Italy Pushes Near-Zero Fees for Digital Euro Payments Under €10

Italy has proposed waiving fees on digital euro payments below €10 as European Union officials negotiate rules for the currency’s rollout.

The proposal would cap merchant fees at €0.02 per transaction, although negotiators could reduce the charge to zero, according to an EU diplomat. The move could lower costs for small purchases and make the digital euro more attractive to merchants.

Italy Targets Small Businesses

The European Central Bank reportedly views Italy’s proposal favourably. The fee system would initially remain temporary, allowing officials to collect data and assess its impact.

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Small merchants could benefit most because they typically have less bargaining power when negotiating payment fees. ECB analysis suggests they can pay three to four times more than larger businesses.

The digital euro is designed to complement cash rather than replace it. The currency could launch as early as 2029 if lawmakers approve the proposed rules.

EU Weighs Payment Costs

Policymakers must balance merchant costs with the broader digital euro rollout. The currency would have legal-tender status, meaning merchants would generally need to accept it.

Lawmakers are also considering limits on digital-euro wallet holdings. The European Commission, Parliament and EU member states will negotiate the compensation model, while the European Court of Auditors has called for better data on merchant costs.

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