ECB picks 36 payment firms for 2027 digital euro pilot

The European Central Bank has named 36 payment service providers to join a 12-month digital euro pilot scheduled to start in the second half of 2027, moving the project from design work into large-scale practical testing. The trial will run across the ECB and 19 national central banks in the euro area, including Germany, France, Italy, Spain, the Netherlands, Ireland, Portugal and Finland. The ECB said it received more than 50 applications after opening expressions of interest in March 2026. Selected participants span banks and non-bank payment companies, covering a range of business models, sizes and geographic footprints. The pilot will use a beta version of the digital euro aligned with the approach set out in draft legislation, though it will not carry legal tender status. Some firms will serve as distributing payment service providers, giving Eurosystem staff access to beta services such as account setup and payment execution. Others will operate as acquirers, enabling selected merchants to accept beta digital euro transactions; some participants will take on both roles. Testing will cover person-to-person payments online and offline, as well as consumer-to-business payments at physical points of sale, including software-based POS systems. E-commerce and mobile payments are also in scope. Piero Cipollone, the ECB executive board member leading the digital euro work, said the level of interest reflects “the private sector's readiness to engage actively with the digital euro project to strengthen the European payments landscape.” Stripe is among the companies selected. Stripe vice chair Eileen O'Mara said Europe has a rare opportunity to shape its digital payments future, writing that success hinges on a digital euro that works for the real economy and is easy to integrate while delivering the security, reliability and performance businesses expect. The announcement also reignited criticism from digital-asset advocates and central bank digital currency skeptics. On X, Handre Van Heerden argued the digital euro could give the ECB excessive control over money, raising concerns over traceability, potential limits on spending, and policy tools such as negative rates or expiry rules. Privacy remains one of the most contentious issues surrounding the project. The ECB has positioned the digital euro as a way to safeguard monetary sovereignty as stablecoins, private payment networks and crypto assets expand. The 2027 pilot will be a key test of whether a central bank digital currency can meet real-world payment needs without eroding public trust.