The European Central Bank is opening a merchant pilot for its proposed digital euro, with a 12-month beta test due to begin in the second half of 2027. The trial is aimed at online and mobile merchants in the euro area and is intended to test how digital euro payments would work in remote commerce settings.

Applications are open until Oct. 27. According to the ECB, the exercise will help it assess checkout integration, user experience, technical performance and day-to-day operational processes before any final decision is taken on whether to issue the currency.

Pilot focused on remote commerce

The program is targeted at e-commerce and mobile-commerce businesses operating in the euro area. Participating merchants would test beta digital euro payments in online and mobile checkout environments, giving the ECB a view of how the proposed currency could fit into existing purchase flows.

The pilot is set to run for 12 months. Its scope includes examining whether the payment experience works smoothly for merchants and users, and whether the underlying systems perform reliably in practical commercial use.

Beta will reflect the draft design

The ECB said the beta version will be close to the digital euro model set out in draft legislation. At the same time, it stressed that the pilot product will not have legal tender status.

That distinction matters because the test is designed to gather evidence on a proposed system rather than launch a live public currency. Feedback from merchants during the exercise is expected to feed into the ECB’s design choices.

How merchants will be selected

Participation in the pilot is voluntary and unpaid. The ECB said applicants will be assessed on factors including market reach, operational readiness and overall suitability for the test.

Merchants chosen for the program will also need to establish, or adapt, a relationship with one of the payment service providers taking part in the initiative. That requirement is meant to support both user access and merchant acceptance during the pilot.

Payment partners already chosen

Before inviting merchants, the ECB selected 36 payment service providers from more than 50 applicants to support the project. The group includes firms and banks such as Revolut, Stripe, Deutsche Bank and UniCredit.

The merchant phase now extends that work by bringing in businesses that can test real checkout and acceptance scenarios. The ECB has indicated that the findings from these trials will help shape the final design of the digital euro.

Next step depends on EU legislation

For now, the ECB is gathering participants and preparing for a second-half 2027 start. The application window for merchants closes on Oct. 27.

A final decision on whether the digital euro will be issued is still tied to the progress of EU legislation. Until that process is completed, the pilot remains a preparatory exercise rather than a confirmation that the currency will go live.

Source: cointelegraph.com