The European Central Bank has formally invited e-commerce and mobile-commerce merchants across the euro area to join a 12-month digital euro pilot beginning in the second half of 2027. The exercise is intended to test online, mobile, in-store and person-to-person payments using a beta currency that will not be legal tender, as the ECB works toward possible issuance of the digital euro in 2029.
Selected merchants will participate alongside 19 euro-area national central banks and 36 banks and payment firms already chosen for the testing program, including Deutsche Bank, Revolut, CaixaBank, BNP Paribas and ING. ECB and national central bank staff will act as consumers during the controlled test, allowing businesses to assess the technology, operational processes and user experience needed to handle payments.
The ECB is looking specifically for merchants that can accept e-commerce and mobile-commerce payments in euros and operate within the euro area. The pilot will cover person-to-person transfers, physical store payments, online purchases and mobile-commerce channels. In April, the central bank signed standards agreements with the European Cards Payment Cooperation, nexo standards and the Berlin Group to reuse existing open payment specifications and lower integration costs.
Hedera vice president of global policy Isadora Arredondo said merchant acceptance may be the harder part. “Many people think the digital euro’s success will depend on how governments and the public sector explain its usefulness. But the more difficult part will be making the project work commercially.” One potential incentive is for payment service providers to reduce fees charged to merchants for accepting digital euro transactions.
Technical preparation does not equal final approval. Issuance requires EU legislation and a separate ECB Governing Council decision, with readiness targeted for 2029. The project is being developed as EU policymakers examine foreign payment providers and privately issued stablecoins. ECB Executive Board member Isabel Schnabel said the global stablecoin market was approaching $300 billion, with Tether’s USDT and Circle’s USDC accounting for roughly 90% of the sector. Eight MiCA-compliant euro stablecoins grew 128% to $673.9 million over the year through June 28, but still represented less than 1% of the total stablecoin market.
