Italy Pushes for Zero Fees on Digital Euro Payments Under €10

Italy has proposed a significant reduction in fees for digital euro payments under €10. The proposal, currently being negotiated by European Union officials, would cap merchant fees at €0.02 per transaction. However, negotiators could potentially reduce this charge to zero.

The European Central Bank reportedly views Italy's proposal favourably and believes it could make the digital euro more attractive to merchants, particularly small businesses that typically have less bargaining power when negotiating payment fees.

According to ECB analysis, small merchants can pay three to four times more than larger businesses. The fee system would remain temporary initially, allowing officials to collect data and assess its impact.