The Eurosystem announced the initiative for payment providers, fintech companies, merchants, public institutions, research institutes and consumer associations. The program combines research workshops with practical testing of proposed digital euro payment features.

AI in payments

A dedicated track will focus on artificial intelligence in payments. The European Central Bank plans to explore AI-based payment solutions, AI agents, micropayments, automated device-to-device payments and new payment-app features.

Participants will examine whether those solutions align with the digital euro’s principles of privacy, trust, user control and data protection. Cybersecurity, fraud prevention, regulatory compliance and internal operational processes fall outside the scope of the track.

The ECB will conduct the track through a series of research workshops at its premises in Frankfurt during the first and second quarters of 2027. Payment service providers, technical service providers, merchants, consumer organizations, academic institutions and fintech companies may participate.

Practical testing program

A parallel program will test specific features from January through June 2027. One area covers electronic receipts integrated directly into digital euro transactions and displayed in users’ payment apps.

The program will also test payments involving multiple payers or recipients. These include transactions in which several people contribute to a single payment, such as when splitting a bill, and payments that are automatically distributed among several recipients.

Another area covers conditional payments, which are executed automatically when predefined conditions are met. The ECB distinguishes these transactions from “programmable money”: the digital euro would not impose restrictions on when or for what purpose funds could be spent, or on the permitted recipients.

A fourth track will examine payment-app features including behavioral biometrics, AI-powered tools, advanced budget-management functions and accessibility features.

Participants will also explore digital euro uses in the public sector, including public transport, municipal services, parking, electric-vehicle charging, smart cities and internet-connected devices.

Eligibility and participation

Participation is voluntary, and the Eurosystem will not provide financial rewards or compensation. Eligible applicants must be legally registered organizations in the EU, including companies, associations, public authorities and research institutions.

The ECB previously selected 36 companies to test the digital euro in 2027.

Source: Incrypted