ECB Selects Providers for Digital Euro Pilot, Set to Launch in 2027

The European Central Bank (ECB) has selected 36 payment service providers to participate in its digital euro pilot, set to launch in the second half of 2027. The initiative aims to create a cross-border public payment option for the euro area, reducing reliance on non-European payment infrastructure.

More than two-thirds of euro-area card transactions are currently processed under business rules set by non-European companies. This is one of the main drivers behind the ECB's push for a digital euro, which would operate alongside existing payment systems and cash.

The project is expected to require around €1.3 billion in development costs up to 2029, with annual operating costs projected at approximately €320 million from that year onwards. Euro-area banks could face investment costs ranging from €4 billion to €5.8 billion over four years.