ECB selects 36 payment firms for 2027 digital euro pilot
The European Central Bank has chosen 36 banks and fintechs to test a digital euro starting in 2027, a crucial step toward modernizing Europe's retail payments infrastructure and reducing reliance on foreign payment networks.
The European Central Bank has selected 36 payment service providers to participate in a digital euro pilot scheduled to begin in the second half of 2027. The chosen firms, drawn from a pool of more than 50 applicants, include both traditional banks and non-bank payment companies operating across the euro area.
For Europe’s financial sector, the selection marks a shift from theoretical design to practical engineering. A widely adopted digital euro would fundamentally alter the retail payments market, potentially challenging the dominance of international card schemes and large tech-driven payment wallets. Securing a spot in this pilot gives these 36 firms early influence over the technical standards of that future system.
Over a 12-month period, participants will test a beta version of the digital euro. While this version will function much like the final product outlined in draft legislation, it will not carry legal tender status. The selected companies will take on different roles: distributing providers will let central bank staff set up digital wallets and make payments, while acquiring providers will equip selected merchants to accept them.
The testing environment will span the ECB headquarters and 19 national central banks, from Finland to Portugal. Central bank employees will act as the initial users, making person-to-person transfers online and offline, as well as person-to-business payments at physical point-of-sale terminals and through e-commerce platforms. Participating merchants will include everyday services like cafeterias and restaurants.
Piero Cipollone, the ECB Executive Board member who chairs the High-Level Task Force on a digital euro, pointed to the volume of applications as a positive signal. “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,” he said. “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.”
The ECB will now work directly with the selected providers and their respective national central banks to prepare for the 2027 launch. Regular progress updates will be published as the Eurosystem attempts to finalize a product that could eventually sit alongside cash as a public digital payment option.
