Digital Euro Preparations Advance Offline Functionality and Merchant Integration Tests

The European Central Bank continues preparations for its digital euro pilot through updates released in October and November 2026. These materials describe a 12-month internal test using a beta version that will run from the second half of 2027 into mid-2028. The pilot focuses on technical and operational functionality without granting legal tender status.

Thirty-six payment service providers were selected in July 2026 to participate. The group includes banks and non-banks across the euro area. Eurosystem staff will serve as test users at the ECB and 19 national central banks.

Digital Euro Pilot Tests Four Payment Scenarios Including Offline NFC Transfers

The pilot covers four specific use cases. These are person-to-person online payments using aliases, person-to-person offline payments via NFC proximity, person-to-business payments at the point of sale through NFC or SoftPOS, and remote person-to-business transactions in e-commerce and m-commerce. Offline transfers settle directly between devices without internet access and maintain cash-like privacy, with transaction details visible only to the payer and payee.

Offline holdings require pre-funding. The technical design includes secure elements on user devices, issuance and distribution components, and reference implementations supplied by the ECB for integration by payment service providers. The approach also supports resilience during network outages.

Trilogue negotiations on the Single Currency Package, which covers the digital euro regulation and cash rules, remain ongoing. The ECB has called for completion by the end of 2026 to provide legal certainty ahead of any potential first issuance, which could occur in 2029 pending a Governing Council decision after legislation is adopted.

Merchant Integration Call Targets E-Commerce and Point-of-Sale Checkout Tests

A call for expressions of interest for merchants opened on 15 September 2026 and closed on 27 October 2026. A limited number of merchants with diverse profiles will work with acquiring payment service providers on checkout integration and remote person-to-business journeys. Onboarding and integration are scheduled for the second and third quarters of 2027, with final merchant selection expected in early 2027. Existing Eurosystem merchants, such as canteen operators, will also take part to test everyday services.

Additional innovation work, including conditional payments and the role of artificial intelligence in payments, is planned for January through June 2027. The pilot rulebook finalisation depends on the outcome of the legislative process.

These developments build on the timeline already set for the digital euro pilot that begins in the second half of 2027. Further details on participant onboarding and merchant selection are expected by late 2026 or early 2027.