ECB Invites Merchants to Join Digital Euro Pilot Program
The European Central Bank (ECB) has invited e-commerce and mobile merchants to join a 12-month digital euro pilot program set to begin in the second half of 2027. The program aims to test the feasibility of using the digital euro for online, mobile, in-store, and person-to-person payments. The beta currency will not be legal tender and will only be used within the boundaries of the pilot.
The ECB has selected 36 banks and payment providers for the testing program, including Deutsche Bank, Revolut, BNP Paribas, CaixaBank, and ING. The merchants participating in the pilot will act as consumers during the test, making person-to-person transfers, shopping online, paying at physical stores, and completing mobile-commerce transactions.
Analysts say that merchant acceptance is a key challenge for the digital euro's commercial viability. Isadora Arredondo, vice president of global policy at Hedera, stated that merchants may need financial incentives to participate in sufficient numbers. One option on the table is lower payment processing fees for merchants who accept digital euro transactions.
The ECB is working to lower technical barriers to entry and has signed standards agreements with various organizations to enable digital euro payments on existing European payment infrastructure. However, legislative hurdles remain before a final decision can be made on the digital euro's issuance in 2029.