ECB Invites Merchants to Test Digital Euro Payments from Mid-2027

The European Central Bank (ECB) is inviting merchants to test digital euro payments starting in the second half of 2027. The pilot will run for 12 months and will involve e-commerce, mobile-commerce, online, mobile, in-store, and person-to-person payments using a beta currency that is not legal tender.

The ECB has already selected 36 payment firms to participate in the testing program, including Deutsche Bank, Revolut, CaixaBank, BNP Paribas, ING, and others. The pilot will test several types of payments expected to form part of a possible retail digital euro, such as person-to-person transfers, paying at physical stores, purchasing goods online, and making payments through mobile-commerce channels.

Isadora Arredondo, vice president of global policy at Hedera, suggests that merchant participation poses a commercial challenge for the digital euro. She notes that getting merchants to accept the currency could become a separate challenge from building the payment infrastructure, and proposes that payment service providers reduce fees charged to merchants for accepting digital euro transactions as an incentive.

The ECB is targeting possible digital euro issuance in 2029, subject to EU legislation and a separate decision by its Governing Council. The pilot will give the ECB its first large controlled test involving central banks, payment providers, and merchants before reaching the targeted readiness date.