The European Central Bank has released its most technical description to date of how the first operational pilot of the digital euro will function. According to an annex published on 28 November 2025, the Eurosystem will invite payment service providers to join a controlled 12-month pilot beginning in the second half of 2027, subject to EU lawmakers adopting the digital euro regulation in 2026. The document, titled Pioneering the Future of European Payments, outlines the pilot’s scope, required technologies and participation criteria.
The ECB states that the pilot will be used to validate the technical, functional and operational readiness of the digital euro scheme. The activities will rely on a digital means of payment issued by the Eurosystem that mirrors the design of the proposed CBDC, although it will not take its legal form. Users in the pilot will consist only of Eurosystem staff and selected merchants inside ECB and national central bank premises.
Four core payment use cases
The document specifies four transaction types that payment service providers (PSPs) must be technically capable of supporting. These include online person-to-person transfers initiated using an alias or access number, and offline peer-to-peer (P2P) transfers using NFC, where both devices operate without connectivity. In addition, the pilot will test online person-to-business payments using Software Point of Sale (SoftPOS) technology, and an e-commerce use case integrating digital euro payments into merchant websites or apps.
These scenarios are intended to replicate the full range of consumer payment interactions. They also reflect the ECB’s ambition to ensure interoperability between bank apps, merchant systems and the Eurosystem’s core infrastructure. The pilot will evaluate how PSPs integrate these functions, manage user authentication and ensure secure token-based value transfers.
Technical systems and form factors
Individual users will access the pilot exclusively through mobile applications, either those supplied by their participating PSP or an application developed by the Eurosystem. Merchants will interact through SoftPOS or web-based payment interfaces. The Eurosystem highlights that the selected PSPs must support both online and offline capabilities, including NFC tap-to-pay features for retail scenarios.
These requirements reflect the ECB’s broader strategy to ensure the digital euro can function across heterogeneous European payment environments. They also signal ongoing efforts to test the resilience of offline payments, which remain a politically sensitive feature linked to preserving cash-like capabilities.
Selection criteria and pilot role for PSPs
The call for expressions of interest is expected in early 2026 and will seek a diverse representation of banks, payment institutions and e-money providers. PSPs selected will co-develop, implement and test the pilot services, offering feedback that feeds directly into the digital euro rulebook and technical specifications. The ECB notes that participation offers PSPs rare early insight into infrastructure design, alongside the opportunity to influence its evolution before potential issuance.
The ECB will also host open information sessions to brief prospective participants. Final terms and conditions will be published with the formal call next year.
What the pilot means for Europe
The 2027 pilot marks a decisive step toward operational readiness for a possible digital euro launch later this decade. It allows the Eurosystem to test architecture choices, refine user experience and assess PSP integration challenges under controlled conditions. For banks and fintech firms, it represents both a technical obligation and a competitive opportunity, given the ECB’s goal of fostering cross-border solutions that reduce fragmentation in Europe’s payments landscape.
If lawmakers finalise legislation by 2026, the pilot could become the foundation for the digital euro’s first public phase. Its outcome will help determine how Europe balances privacy, security and innovation in building a state-backed digital currency for daily use.