The payment system is one of the key systems that has influence to the general economic system of some country, its functioning and results. Ensuring a stable payment system is the one of main goals of every economy. That cause to a whole series of other economic and non-economic effects. European Union, as a supranational entity, invests exceptional efforts in the development and strengthening of its payment systems. It follows contemporary needs, market demands, opportunities and international trends. The formation of the European Union payment system was carried out in several stages throughout history. Key events that have been taking important place in this evolution begins in the last century and continue to this day. The basic changes are related to the adoption of the euro as a single payment currency, digitalization of payment transactions, and modernization and resistance to external factors. The European Union payment system is very developed. It is the result of the leading stakeholders engagement and its continuous revision. Due that, European Union today is a stable economy and a competitive economic system. A special progress is visible in monitoring contemporary needs and trends, which results in an increasingly digitized payment transaction. It is believed that its further development willcontinue in the future time.