The European Central Bank has moved the digital euro project into its next phase, selecting payment service providers to take part in a pilot designed to stress-test how a potential central bank digital currency could work in real-world payments.
In an announcement published Tuesday, the ECB said it has chosen 36 payment service providers (PSPs) to participate in the digital euro pilot. The project follows the ECB’s earlier work on the concept and comes as European policymakers continue exploring a CBDC while other jurisdictions take markedly different positions.
Key takeaways
- The ECB selected 36 payment service providers for a digital euro pilot after receiving more than 50 applications.
- The 12-month trial is scheduled to begin in the second half of 2027, with testing involving the ECB and central banks across 19 euro-area countries.
- Participants include both major banks and fintechs, such as Deutsche Bank, UniCredit, BPCE, Stripe, and Revolut.
- Italy leads the participant list with seven selected firms, while Germany, Portugal, and Greece have smaller groups.
- The pilot’s focus is on testing user access and merchant payment flows before any potential token issuance.
ECB selects 36 providers for the pilot
According to an official ECB announcement published Tuesday, the central bank has picked 36 PSPs to join the digital euro pilot. The ECB described the process as part of moving from design and planning into hands-on testing with the private sector.
The ECB said it opened a call for interest in March 2026 and received more than 50 applications from payment companies. The selected group spans a range of business types, including traditional banks, payment processors, and non-bank service providers.
Among the names included are fintechs such as Stripe and Revolut, alongside established banks including Deutsche Bank, UniCredit, and BPCE. While the ECB’s selection is specific to pilot participation, Revolut’s broader approach to crypto services has been in flux for EU customers in recent months, including a reported move to phase out support for Tether USDt in some regions.
A euro-area wide test with local and cross-border roles
The pilot is planned to involve the ECB and the central banks of 19 euro-area member states. The ECB noted that the testing will include institutions across countries such as Belgium, Germany, France, Italy, Spain, and the Netherlands—reflecting an effort to examine how a single digital euro framework could operate across different payment environments.
ECB officials said the selected providers are intended to create a “broad testing environment,” including the ability for participants to offer pilot services outside their home markets. That matters because payment rails, customer behavior, and commercial partner ecosystems differ significantly across the euro area. A wider spread of PSPs could therefore help the ECB identify friction points earlier.
The ECB also laid out that participants would carry different responsibilities. Some firms are expected to support user access to beta digital euro services, while others focus on merchant acceptance and payments. Several PSPs will take on both functions during the trial.
Italy leads participation as ECB tallies geography
Geographically, the ECB highlighted that Italy has the largest number of selected participants. Seven Italian firms were chosen to join the pilot: UniCredit, Poste Italiane, Nexi Payments, Banca Sella, Banca Monte dei Paschi di Siena, Isybank, and Numia.
Germany follows with five selected providers. Portugal and Greece each have three firms in the pilot cohort. The ECB said the country mix is designed to support testing across multiple national payment ecosystems, while also allowing selected PSPs to operate beyond their home markets.
Why the ECB is bringing in PSPs now
ECB Executive Board member Piero Cipollone—who chairs the high-level task force on the digital euro—said the level of participation shows strong private-sector interest in helping shape the project. He also suggested the central bank expects increased cooperation with payment providers as testing moves forward.
“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,” Cipollone said.
For investors and builders watching the digital euro track, the selection signals that the ECB is prioritizing operational readiness and distribution-channel testing rather than focusing exclusively on design. By involving PSPs before any potential issuance, the pilot’s immediate goal is to evaluate how a digital euro could be accessed and used—through both customer interfaces and merchant payment systems—under realistic conditions.
That timing also places the digital euro in the middle of an international policy split. While Europe presses ahead with CBDC experimentation, the United States has moved to block the Federal Reserve from issuing a CBDC, according to earlier reporting. The contrast underscores how governance choices can shape the pace of experimentation, even when both sides acknowledge the broader question of what role public money-like digital instruments should play in future payment systems.
Next, the market will likely focus on how the pilot’s structure affects real adoption: which PSPs emphasize consumer onboarding versus merchant enablement, how interoperability is handled across the 19 participating central banks, and what technical or policy issues the ECB identifies during the 12-month run starting in the second half of 2027.
