digital euro This is a promising step forward for Europe, with the potential to change the way money moves across the continent.
Most of the discussion so far has focused on payments sovereignty and consumer wallets, and both are absolutely important. A reliable central bank money would complement cash and offer a European, independent alternative to commercial payment solutions, including those operated by international providers.
But the digital euro has much more innovative potential: supporting next-generation B2B and embedded payment services across Europe.
If the infrastructure built around a central bank digital currency is easy to deploy within existing platforms and processes, European financial services and ultimately their end users will reap the rewards.
Activate new services
Creating a common infrastructure for digital euro payments is critical. Europe can provide a platform for banks, fintechs and payment providers to develop new services for consumers and businesses.
Reducing friction between European markets makes it easier for businesses to reach new customers, enter new markets and develop services that are difficult to deliver in today’s fragmented payment environment.
Imagine a marketplace that can pay sellers across borders more efficiently, or a retailer that can deal with overseas suppliers as easily as domestic suppliers.
Realizing these benefits will depend on the services and support built around the digital euro and how effectively they meet business needs.
Lessons from adopting embedded finance
The pace of adoption of embedded finance in Europe is an interesting case study in the rollout of digital euro-backed services. It shows that technology alone is not enough to guarantee a successful deployment.
The whole premise of embedded finance is about seamless access to financial services. But applications are still challenged by complexity.
Although the technology is widely available, deployments are often delayed and initial solutions may fail to scale. This may be due to the complexity of integration with third parties, changing standards, and lack of application support.
The research draws on interviews with more than 150 senior leaders from banks, fintechs, trading platforms and digital asset firms in the UK and Western Europe. Visa Consultancy and Analytics found that revenue growth and international expansion for established financial products depend on close support across integration and distribution.
81% of CFOs say they need expert support to manage the complexity of embedded finance. Two in five survey respondents saw the international expansion of embedded funding being delayed when provider support remained inadequate.
The ability to achieve something technically is not the same as having the knowledge and expertise to create technology that works for any business.
This demonstrates the vital role fintechs and payment providers play in guiding customers through the complexities of financial infrastructure and compliance.
Policymakers should therefore consult this business payments and cross-border trade ecosystem from the outset to ensure that the digital euro is designed to support long-term business growth across Europe.
Interoperability issue
Payment innovation is evolving across a growing number of public and private initiatives. But regional differences in technology, governance and regulation, and the legacy infrastructure that supports much of the financial system create challenges to interoperability.
Without a connective tissue between new and existing systems, emerging forms of digital money run the risk of evolving along separate paths rather than making payments simpler and more connected.
The extent of this challenge is evident in the persistent problems caused by cross-border payments.
In the last progress assessment published in October 2025, Financial Stability Board (FSB) found that efforts to increase the speed, cost and transparency of international payments have not yet yielded tangible improvements for end users globally. Progress on key measures was minimal, making it unlikely that the G20’s 2027 targets would be achieved globally. These include reducing the average cost of cross-border retail payments to 1% or less and ensuring that at least three-quarters of funds are available to recipients within one hour.
The importance of interoperability is also reflected in broader industry initiatives. In May 2026, Bank for International Settlements (BIS) announced the rating results Agora Project Prototype exploring how wholesale tokenized central bank reserves and commercial bank deposits could run on shared infrastructure. Developed in conjunction with seven central banks and more than 40 regulated financial institutions, the initiative reflects the growing awareness that new forms of money must work across institutions and existing financial systems.
Creating a connected environment
An interoperable digital euro needs an open ecosystem around it. Common standards and well-documented APIs will allow banks, fintechs and regulated payment providers to integrate the digital euro into services businesses already use.
A new form of money must also connect with the processes surrounding a transaction: compliance, reconciliation, accounting and customer experience. Open participation pathways for regulated providers will encourage competition and innovation, expand distribution and allow products to be developed around different business needs.
Open banking provides a useful example. Regulation provided access to financial data, but the value came from providers using it to create new services and customer experiences.
The digital euro could follow a similar path; It can be integrated into billing tools, accounting platforms, marketplaces and B2B payment systems. In this way, providers can make it easier for businesses to manage payments, automate processes and operate in European markets.
The value of expert expertise
Technology is just one part of what determines the value businesses get from payment innovations. Visa Consulting & Analytics research found that 70% of CFOs say gaps in provider services delay payment performance.
However, when businesses choose a payment partner, service is not always given the same priority as technology. As new forms of money evolve, providers that combine scalable technology with responsive service and expert expertise will have a key role in helping businesses realize the benefits.
Design suitable for real-world use
The digital euro should be designed around real-world use cases, and the wider ecosystem should be consulted from the outset on business functions such as direct debits and cross-border payments. Common standards and clear pathways for fintechs and regulated payment providers to participate alongside banks are vital.
An open system is critical to ensuring the digital euro becomes part of the systems businesses already rely on, giving providers the flexibility to develop products to respond to changing business needs.
With the right foundations, the digital euro will deliver benefits that exceed the sovereignty goals expressed by many. It has the potential to support a new generation of embedded payment services that help businesses more easily collect, hold, convert and send money across Europe.
James SimcoxProduct Director equalsA Fintech that provides expense management, payments and multi-currency accounts. Equals Money PLC is authorized by the UK Financial Conduct Authority to provide payment services. Equals’ trading volume exceeds £58bn in 2025/26.
