The Merchant Payments Coalition, representing groups such as EuroCommerce and SME United, is calling for a capped and transparent fee structure with the introduction of the digital euro. The coalition proposes a flat fee model for transactions and stresses that the digital euro, as public money without credit risk, should be cheaper than existing private payment schemes.
According to the coalition, rising payment costs remain a key concern for retailers across Europe. With mandatory acceptance of the digital euro under discussion, merchants argue that the regulatory framework must ensure tangible financial benefits from day one.
This position aligns with parts of the ongoing political debate in Brussels. The Progressive Alliance of Socialists and Democrats (S&D) has also emphasized that businesses — particularly small merchants — should benefit from lower and more predictable fees.
“Better Off” For Retail
“Europe’s businesses must be better off from the introduction of the digital euro,” said Member of European Parliament Nikos Papandreou, highlighting the need for a payment system that is cheaper, safer, and more user-friendly for both merchants and consumers.
“The digital euro should represent a genuine alternative to the fees charged by existing private payment schemes. This matters to us all: to the local coffee shop or grocery store on our street, and to all of us who buy our coffee and fruit there,” he added.
The Greek MEP also stressed that: “any merchant fee should be predictable, affordable, transparent, and fair,” calling for substantially lower costs that benefit both merchants and the broader European economy.
The digital euro project, driven by the European Commission, is designed as a public alternative to dominant private payment providers. However, negotiations in the European Parliament continue to focus on key issues such as merchant fees and the compensation framework for banks.
As the legislative process advances, the debate underscores a central challenge: the digital euro will only gain traction if it works in everyday retail — from small shops to larger chains — and offers a clear economic advantage over existing payment systems.
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