Merchants see potential in an offline digital euro

A new European payment method

The European Central Bank (ECB) and the national central banks in the euro area are exploring the possibility of introducing a digital euro alongside cash and coins. The goal is to ensure that everyone in the euro area continues to have access to a modern public means of payment. For more information on the digital euro go to: The digital euro for you .

A payment method that works even during outages appeals to merchants

One of the key advantages of the offline digital euro is its ability to keep payment transactions running during network outages. It works without an internet connection – either on a smartphone or via a payment card – making it possible to pay even when the bank or merchant’s network is down. In this way, it can serve as a reliable backup system. This feature is among the most frequently mentioned requirements by merchants surveyed, second only to security, which is seen as a fundamental condition for any trustworthy payment method (see Figure 1). The zero-downtime feature is appreciated especially among point-of-sale businesses in sectors with high volumes of daily transactions, such as supermarkets, street vendors, and fuel and charging stations. Merchants also place great value on customer privacy in digital payments. The offline version of the digital euro offers both privacy and resilience, making it a strong complement to the existing range of digital payment options available in the Netherlands.  

Figure 1 - Merchants see security, privacy, and resilience during disruptions as essential features of the digital euro

Source: Conclusr/DNB survey of Dutch merchants on the digital euro, summer 2024. 1,023 respondents.

Merchants want equal or lower costs

Merchants are concerned about the potential costs of a new payment method: 79% fear that transaction fees for digital euro payments could be higher than those of existing options. They believe the costs should be equal to – or preferably lower than – those of current mainstream payment methods. In addition, two out of three merchants are wary of the investments required to support digital euro payments, such as new software or payment terminals. Many would prefer to continue using their existing payment infrastructure and devices as much as possible.

Awareness of the digital euro among merchants is limited

Awareness of the digital euro remains low among the merchants. Nearly half (46%) say they are not familiar with it at all, while 43% have heard of it but do not know exactly what it is. Only 11% consider themselves well informed. This limited awareness is consistent across different sectors and among both small and large merchants. One likely explanation is the lack of active communication so far, as no political agreement has yet been reached on the introduction of the digital euro. 

Introduction of digital euro depends on political decision

EU Member States, the European Parliament and the European Commission must still negotiate legislation that would enable the introduction of the digital euro. Once they reach an agreement and the final legal framework is in place, the European Central Bank (ECB) can proceed with developing the new payment system for all euro area countries. The digital euro would strengthen Europe’s strategic autonomy in payments by offering a public payment option that operates autonomously and alongside non-European payment service providers and large international tech companies. At present, such strategic autonomy is lacking: in many countries – including the Netherlands – non-European firms play a critical role in the retail payment infrastructure.