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Italy Proposes Fee Exemption for Digital Euro Payments Under €10
Italy is advocating for a proposal that would exempt merchants from transaction fees on digital euro payments below €10. This initiative aims to support small businesses in the country as the European Central Bank (ECB) prepares to launch its central bank digital currency (CBDC). The proposal is part of ongoing trilogue negotiations in Brussels involving the European Parliament, Council, and Commission regarding the regulatory framework for the digital euro.
Currently, card payment fees in Italy average around 0.57% per transaction, which can accumulate significantly for small merchants processing numerous low-value sales daily. Italian Economy Minister Giancarlo Giorgetti has emphasized the need for digital euro acceptance costs to be lower than existing card transaction fees. Additionally, members of the European Parliament from the Forza Italia party have suggested amendments to eliminate fees entirely on low-value retail transactions for a transitional period of three years after the digital euro's launch.
The digital euro is designed to be a government-issued digital payment option that complements traditional banknotes while maintaining privacy protections. The ECB estimates that the project will incur setup costs of approximately €1.3 billion, with annual operating expenses of around €320 million expected to begin in 2029. One feature under consideration is the ability to conduct offline payments without incurring fees, which could further enhance its appeal to users. Meanwhile, the Italian mobile payment platform Satispay plans to implement zero fees on transactions under €10 starting in September 2026, ahead of the digital euro's anticipated launch between 2028 and 2029.
Source: KLEA News