ECB names 36 payment providers for digital euro pilot

The European Central Bank has chosen 36 payment service providers from across the euro area to take part in a digital euro pilot, a step that moves the central bank digital currency project closer to live technical testing. The exercise is scheduled to begin in the second half of 2027 and run for 12 months, according to Finextra.

The programme will test the digital euro’s technical functions and operating procedures, while also helping refine the way users interact with the system. The ECB received more than 50 applications after seeking expressions of interest from payment service providers in March 2026, Finextra reported.

The selected firms include banks and non-bank payment service providers. ECB executive board member Piero Cipollone said the group covers a range of business models and company sizes, with broad geographic representation across the euro area.

“The strong market interest in the pilot shows the private sector’s readiness to engage actively and quickly advance with the digital euro project to strengthen the European payments landscape,” Cipollone said, according to Finextra. “We look forward to deeper engagement as we work with and learn alongside European payment service providers in developing a secure, efficient and inclusive digital euro.”

How the pilot will work

The pilot will use a beta version of the digital euro. Finextra reported that this version will be functionally and technically close to the form of digital euro envisaged in draft legislation, but it will not have legal tender status during the exercise.

A digital euro would be central bank money in electronic form, designed for retail payments rather than wholesale settlement between financial institutions. In the pilot, participants will be able to test the mechanics of payment initiation, acceptance and processing in controlled conditions before any formal launch decision.

The tests will involve ECB staff, employees at participating national central banks, e-commerce merchants and merchants that accept everyday payments at physical premises. Central bank staff involved in the pilot will be able to make person-to-person beta digital euro payments online and offline. They will also be able to make person-to-business payments at physical points of sale and through e-commerce channels, including mobile payments.

Euro area central banks involved

The pilot will take place at the ECB and 19 national central banks in the euro area. The countries listed for participation are:

• Belgium, Germany, Estonia and Ireland
• Greece, Spain, France and Croatia
• Italy, Cyprus, Latvia and Lithuania
• Luxembourg, the Netherlands, Austria and Portugal
• Slovenia, Slovakia and Finland

The selection of payment firms is part of the Eurosystem’s preparations for possible digital euro issuance. The pilot phase is intended to examine operational readiness and user experience using a system that resembles the planned digital euro design, while remaining outside legal tender circulation during the test period.

For payment providers, the exercise offers an early opportunity to assess how a central bank digital currency could connect with bank and non-bank payment services. For policymakers, the results are expected to inform practical decisions about system performance, acceptance channels and the division of roles between public infrastructure and private-sector intermediaries.

This story draws on original reporting from Finextra Research.