Italy proposes near-zero fees for digital euro payments under €10

Italy has proposed waiving or significantly reducing transaction fees for digital euro payments under €10 to support small businesses. The proposal aims to protect merchants with lower bargaining power, as European Central Bank (ECB) analysis indicates small businesses often pay three to four times higher fees than large corporations when using existing payment networks like Visa and Mastercard.

Negotiators are currently discussing a compensation model that could cap merchant fees at €0.02 per low-value transaction, though some EU diplomats suggest the actual cost could effectively reach zero. The digital euro is intended to complement cash rather than replace it, and the ECB aims for a potential launch as early as 2029, provided necessary regulations are approved this year.

The initiative is viewed favorably by the banking community and the ECB. It aligns with the European Union's broader goal of increasing strategic autonomy in payment systems and reducing reliance on American-based providers. The proposed fee structure would initially be temporary, allowing officials to collect data before establishing a permanent model.