Exclusive: Italy proposes no fees for digital euro payments under €10
Italy suggests exempting smaller merchant fees for payments under €10, a measure backed by the central banking community, as final talks take place in Brussels over the rollout of the digital euro.
Italy is considering proposing an exemption for digital euro transactions under €10 to benefit small businesses, according to sources and documents cited by Euronews. This move is supported by the European Central Bank (ECB) and aligns with the EU's efforts to achieve greater payment system autonomy. The digital euro, slated for potential issuance in 2029, will have legal tender status, requiring merchants to accept it, except in specific cases.
The debate over the distribution of fees among market participants, known as the compensation model, is a key point of negotiation, with a proposed cap of €0.02 for low-value transactions. The EU is also open to a net-zero fee structure, which would simplify the framework. These temporary fee arrangements will allow the ECB to collect data before deciding on a new model.
Small businesses often face higher fees than larger companies due to weaker bargaining power with international payment schemes, as noted by the ECB. The matter will be discussed among member states, the European Parliament, and the European Commission in upcoming Brussels negotiations.
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