Merchants are next to join the ECB’s digital euro testing programme ahead of its planned 2029 launch.
The European Central Bank (ECB) has invited mobile commerce and e-commerce merchants to join the digital euro pilot.
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Described as a unique opportunity for merchants to work with the central bank and “help shape the future of digital payments in Europe”, the pilot will test the digital euro in areas such as user experience and functionality.
Merchants that volunteer and are chosen for the pilot will test customer journeys, experiment with how it fits into existing payment processes and provide feedback on their findings.
A beta version of the central bank digital currency (CBDC) will be used by selected payment service providers, merchants and staff from participating Eurosystem central banks.
It will last for around 12 months, starting in the second half of 2027 ahead of the ECB’s planned launch in 2029.
Building out the participants
The merchant call follows an earlier search for payment service providers, which saw the ECB select 36 companies from more than 50 applicants, which includes Stripe, Revolut, Adyen, Worldline, Banca Sella, RS2 and BPCE.
Merchants selected for the pilot will work alongside participating providers and will need to establish or adapt a relationship with one of the acquiring PSPs involved in the test.
The ECB said applications will be judged on factors including market reach, operational readiness and how suitable each merchant is for supporting the pilot. An information session will be held on 6 October, while applications close on 27 October.
A look at the digital euro roadmap
CBDCs have developed at different speeds around the world, with some countries pushing ahead with pilots while others have stepped away from the idea.
Europe has become one of the more active markets and the ECB has been clear about what it wants from a digital euro. It has repeatedly said the currency wouldn’t replace cash, would be designed with high privacy standards and should support both online and offline payments.
The UK is taking a similar experimental approach. The Bank of England moved its Digital Pound Lab into Phase 2 this year, with participants including NOBO Finance, Dun & Bradstreet and Polygon, in addition to a wider group testing areas such as offline and conditional payments.
The current work for the digital euro builds on an investigation phase that ran from 2021 to 2023 and a preparation phase between 2023 and 2025, when the ECB developed a draft rulebook and worked on the technical design.
The project has moved into a phase focused on technical readiness, market engagement and support for the legislative process, working on the assumption that EU lawmakers will adopt the necessary legislation during 2026. If this happens, pilot testing and initial transactions could begin in the second half of 2027.
The 12-month pilot will then give merchants, payment providers and central bank staff a chance to test how the digital euro performs before any final decision on issuance is made. The ECB has said it wants to be ready for a potential launch in 2029, although that timeline still depends on the legislation being adopted and the pilot progressing successfully.
