EU Negotiators Weigh Fees for Digital Euro Payments as Italy Proposes Near-Zero Charges

The European Central Bank is negotiating rules for the rollout of the digital euro, and Italy has proposed waiving fees on payments below €10. The proposal would cap merchant fees at €0.02 per transaction, although negotiators could reduce the charge to zero.

Italy's move aims to lower costs for small purchases and make the digital euro more attractive to merchants, especially small businesses that typically have less bargaining power when negotiating payment fees. ECB analysis suggests they can pay three to four times more than larger businesses.

The proposal would be temporary, allowing officials to collect data and assess its impact before making any long-term changes. The digital euro is designed to complement cash rather than replace it, and could launch as early as 2029 if lawmakers approve the proposed rules.