ECB Digital Euro Pilot Tests CBDC Through Merchant Checkout

The European Central Bank (ECB) is moving forward with its digital euro pilot, recruiting online merchants to test the beta digital euro through commercial payment infrastructure. The pilot, which begins in the second half of 2027, will put a central bank digital currency (CBDC) through PSPs and merchant checkout, providing evidence about what existing payment infrastructure can be used and what additional work is required.

The ECB selected 36 payment service providers (PSPs) in July to participate in the pilot, which includes banks and non-bank providers from across the euro area. Participating PSPs must develop pilot payment services, connect to the digital euro service platform, conduct user testing, complete back-end certification, and onboard users before the operational phase begins.

The pilot is significant for US payments firms with European operations, as it will provide an early look at whether a retail CBDC can run through existing acquiring, processing, and checkout infrastructure. The results of the pilot will determine more basic facts about the infrastructure required to support a digital euro.