Italy proposes fee exemption for digital euro payments under €10
The proposal would set a merchant service charge cap of up to €0.02 on low-value payments, with a net-zero fee also under consideration.
Italy is pushing for digital euro payments below €10 to face little or no merchant fees, a proposal viewed favourably by the ECB as European lawmakers negotiate how to prevent the new digital currency from placing a greater burden on small businesses, according to Euronews.
The digital euro would complement cash and reduce Europe’s reliance on US-based payment networks such as Visa and Mastercard.
An EU diplomat said the proposal would cap merchant service charges at €0.02 for low-value transactions, especially for smaller merchants, while negotiators are considering making the fee effectively zero.
Internal documents cited by Euronews show the compensation model would be temporary, giving the ECB time to gather data and potentially develop a new framework. The European Court of Auditors has previously said there is insufficient data on merchant fees and payment costs.
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Merchant fees are among the most contentious issues surrounding the digital euro, alongside limits on wallet holdings. Small businesses often face higher charges as they have less negotiating power with international payment networks, with an ECB analysis finding that their fees can be three to four times those paid by larger merchants.
The ECB is targeting a potential first issuance of the digital euro in 2029 if the necessary legislation is adopted this year, while EU negotiators will resume discussions on Sept. 10.