Italy Seeks Fee Relief for Digital Euro Payments Under €10

Italy is pushing for low-value transactions under €10 to incur minimal merchant fees when made using the digital euro. This proposal, viewed favorably by the European Central Bank (ECB), aims to prevent the new currency from placing a greater burden on small businesses.

The digital euro would complement cash and reduce Europe's reliance on US-based payment networks such as Visa and Mastercard. According to an EU diplomat, the proposal would cap merchant service charges at €0.02 for low-value transactions, especially for smaller merchants.

Negotiators are considering making this fee effectively zero. Internal documents show that the compensation model is temporary, giving the ECB time to gather data and potentially develop a new framework. The European Court of Auditors has previously said there is insufficient data on merchant fees and payment costs.