Things are quite different in Europe, where EU interchange is capped at a much lower 0.3% for credit cards and 0.2% for debit cards for most transactions [0]. Despite this, banking fintechs are still thriving, such as Monzo*, N26, and Revolut.

* whilst Monzo is a UK bank, Visa/Mastercard still use the same EU domestic interchange rates in the UK post-Brexit, at least for now.

[0] https://en.wikipedia.org/wiki/Interchange_fee#European_Union