The latest phase in the five-year Digital Euro project will see participation from European payment service providers.
Payment service providers have been invited to participate in the European Central Bank’s Digital Euro pilot in 2027.
In a statement on November 27, the central bank announced the pilot launch will take place in the second half of 2027, and invites for expression of interest will go out in 2026.
Three main phases will comprise the pilot: the Assessment Phase, the Preparation Phase, and the Implementation Phase.
The Assessment Phase will be the initial callout for participating payment service providers to be evaluated, while the Preparation Phase will see the participants sign on for the pilot.
The Implementation Phase will see payment service providers collaborate with the Eurosystem to refine how to conduct transactions with the Digital Euro, onboard users, and collect end user feedback.
Interested European payment service providers will take part in the pilot for 12 months and will assess the technical, functional, and operational readiness of the Digital Euro for digital transactions.
Selection criteria
Participating payment service providers will be selected based on their capabilities and a set of pre-defined selection criteria, and will need to ensure representative coverage of the Euro Area market in terms of size, geographical coverage and market reach.
These pilot tests will take place in a controlled environment and will only be available to a “limited” number of participating parties. Invites will only be available for Eurosystem staff, and selected merchants who provide services on office premises, such as restaurants, of the ECB and Euro Area national banks.
Eurosystem staff will be able to make person-to-person transactions and person-to-business payments at the physical point-of-sale.
To support payment service providers in their preparation for the call of interest, which is due to take place in the first quarter of 2026, the Eurosystem will hold online information sessions.
These will provide an opportunity to engage directly with the Eurosystem and to ask questions. Further details about these sessions, including dates and registration information, will be shared in the next few weeks on the Eurosystem’s communication channels.
The Digital Euro roadmap takes its next step
The invite to payment service providers is the latest update in the Eurosystem and ECB’s progression with developing use cases and investigations into the central bank digital currency (CBDC).
A 2029 launch date has been tentatively earmarked for the Digital Euro and has received the backing of EU Finance Ministers and ECB President Christine Lagarde.
However, the Digital Euro has also faced criticism from EU leaders and banks. Deutsche Bank, ING and BNP Paribas co-authored a letter to the ECB voicing concerns over how the digital currency could hurt the payment private sector, as well as MEP for Spain Fernando Navarette calling for the project to be “scaled down”.
Despite these fresh concerns, Piero Cipollone, Executive Board Member of the ECB, believes the Digital Euro will serve as a digital alternative to cash and “future proof” the Euro for years to come.
“A Digital Euro will ensure that people enjoy the benefits of cash also in the digital era,” said Cipolline during a progress report in October.
“In doing so, it will enhance the resilience of Europe’s payment landscape, lower costs for merchants, and create a platform for private companies to innovate, scale up and compete.”
The Digital Euro project began in October 2020 and kickstarted its first investigation phase in October 2021. This phase lasted for two years, running technical tests for the introduction of a potential Digital Euro to the wider EU financial market.
The latest phase was the preparation phase, which ran from November 2023 to October 2025, and the ECB is now currently undergoing its readiness phase and will seek legislation approval from European Parliament next year for the potential 2029 launch.
