Digital euro: gaining acceptance, proving benefits – success strategies for businesses

Why the digital euro is not a sure-fire success

The digital euro is more than just another technical project of the European Central Bank: it represents an economic and social promise – with implications for citizens, businesses and the financial world as a whole. But the big challenge is not to get it up and running technically. The real hurdle lies in anchoring it across the population and the economy. Trust is not created by regulations or IT infrastructure, but by tangible added value, intuitive use and transparent communication.

While the first part dealt with new opportunities in payment transactions and the second part with technology and security, the third part of my blog post focuses consistently on practical issues: How can the digital euro be designed in such a way that it is accepted by consumers? What are the economic benefits for businesses – and how can these be quantified in concrete terms? And what does all this mean in terms of the regulatory framework, security and implementation? Those who set the right course today will not only be compliant tomorrow, but also strategically ahead of the game.

Before we address the question of how businesses can benefit economically from the digital euro, it is worth taking a closer look at the people who will be using it in the future – and what they actually expect from a digital central bank currency.

User research and behaviour patterns: what people expect from the digital euro

The European Central Bank conducted large-scale user studies between 2022 and 2023. Around 320 participants from different population groups and countries were surveyed. The results paint a nuanced picture that shows how varied expectations and reservations about the digital euro are.

Among younger people and digitally savvy groups, willingness to use the currency is generally high – provided that it can be seamlessly integrated into existing payment methods such as cards or mobile wallets. Older people, on the other hand, often expressed scepticism, particularly with regard to security and control. Retailers generally view digital payment methods positively, but are cautious about the associated investments.

Finally, there are population groups with limited access to digital services, where emotional and technical barriers play a key role. This clearly shows that targeted information, simple entry points and accessible solutions are needed. Behavioural economics provides helpful insights here. People rarely change their payment behaviour based on rational calculations, but rather on emotional experiences and social influences.

A positive first impression – for example, through particularly easy use or small rewards for the first transaction – can build trust and loyalty in the long term. The so-called anchor effect also plays a role: once people have experienced how easy it is to make a payment with the digital euro, they will use this experience as a benchmark for future payment decisions.

The research findings make it clear that the digital euro can only be successful if it is based on real life. But how can abstract findings be turned into concrete recipes for success? Here, it helps to look abroad – to countries that are already further ahead with digital currencies.

International examples: what we can learn from China, Sweden and the Bahamas

A look beyond Europe shows that digital central bank currencies are no longer just theory. In China, the digital yuan, also known as e-CNY, has been gradually introduced since 2021 and is now widely used in several pilot regions. This was made possible primarily by its clever integration into existing systems such as WeChat Pay and Alipay. Combined with targeted incentives, such as discounts or promotional campaigns, it has been possible to anchor its use in everyday life. Particularly noteworthy is the option of paying offline with special hardware cards, an aspect that is also likely to be important for the digital euro.

In Sweden, on the other hand, the e-krona has not yet been introduced. The Swedish central bank, the Riksbank, is still in the trial phase and is testing various technical options, such as offline payments via portable devices. The background to this is that Sweden is considered one of the most cashless countries in the world. The Riksbank therefore wants to use the e-krona to create a digital alternative at an early stage that will ensure access for less tech-savvy or financially disadvantaged groups in particular. Although no decision has yet been made on its introduction, the test series conducted so far show how important it is to focus consistently on user-oriented design, especially if digital forms of payment are to compete with cash.

Finally, the Bahamas show that digital central bank currencies can offer underserved population groups an opportunity for financial inclusion. The Sand Dollar introduced there has been equipped with clear regulatory support and simple technical infrastructure with the aim of reaching people who have previously been excluded from the traditional banking system.

These international experiences show that the success of a digital means of payment depends less on technology than on intelligent introduction, everyday usability and the targeted addressing of individual needs.

User experience as a strategic success factor

Anyone who wants to establish a digital euro must focus on the user experience. Intuitive usability, visual clarity and a high degree of trustworthiness are not only technical requirements, but also emotional ones. Ideally, applications should be adaptable to the respective needs of users, for example through simple interfaces for people who are just starting out and advanced views for experienced users.

The ability to choose between different access channels – whether via app, smart card or an offline wallet with display – also enhances the feeling of control and convenience. Trust, in turn, is built through immediate transaction confirmations, transparent security information and clear communication on data protection and privacy.

Last but not least, emotional appeal also plays a role. The digital euro is not just a technical solution, but a symbol of European sovereignty and modernity. Those who manage to communicate this narrative authentically can significantly strengthen identification with the new means of payment.

If acceptance is the goal, then user centricity is the way to get there. But in addition to the experience at the point of payment, the spread of the digital euro also requires economic logic. So the question arises: does it all add up?

Economic benefits: how innovation becomes a business case

The economic perspective will be a decisive factor in the acceptance of the digital euro by businesses. While regulatory requirements are often seen as a ‘mandatory programme,’ the return on investment is the decisive lever for freeing up internal resources and budgets.

The digital euro opens up new sources of revenue for banks – for example, through wallet management, payment APIs or value-added services in the area of automated payments. At the same time, dependence on global card networks can be reduced, which can lead to significant cost advantages for high transaction volumes.

Clear savings can also be realised in retail. When card fees of up to three percent are eliminated and payments are received in real time, not only does liquidity management improve, but so do margins – especially in online retail. There are also opportunities for integration into customer loyalty programmes or omnichannel strategies.

Finally, for insurance companies, the advantage lies in automation: claims can be processed more efficiently via smart contracts and payouts can be made faster. Studies show potential savings of up to 80 per cent with a simultaneous increase in customer satisfaction.

Three practical calculation examples

• A fictitious bank with 100,000 customers could expect investment costs of around 15 million euros. Assuming 30 per cent utilisation and an average outflow of 3,000 euros per customer, around 90 million euros in deposits would be shifted. This would be offset by new revenue from wallet services and payment APIs of around two million euros per year. The break-even point would be reached after around six to seven years.
• An online retailer with annual sales of 50 million euros, 80 per cent of which are processed via cards, pays around 880,000 euros in transaction fees. If a quarter of payments are made using the digital euro, this saves around £220,000 – an ROI of over 40 per cent after just one year.
• An insurer with 50,000 claims per year can save over three million euros annually by automating 70 per cent of its processes and saving an average of 90 euros per claim. The initial investment would be recouped in less than two years.

It gets even more exciting when companies combine the possibilities of the digital euro with data-driven business models – for example, by analysing transaction data to develop customised offers or for risk assessment. Naturally, this would be done in strict compliance with the GDPR.

The sample calculations show that those who calculate wisely can turn the digital euro into a real competitive advantage. But economic benefits alone are not enough – people have to be on board.

Public perception and the trust issue

Despite technical advances and economic potential, public trust remains a critical factor. A recent survey by Latvijas Banka in February 2025 shows that In Latvia, 42 per cent are sceptical about the digital euro, while only 26 per cent are in favour of it. The main reasons cited are a lack of information and mistrust of technology. In Germany, on the other hand, approval ratings fluctuate around 50 per cent according to the ECB panel, with data protection and fears of control being the main reservations.

The conclusion is clear: the better informed people are, the greater their acceptance. Trust is not created through advertising, but through transparent communication, comprehensible security mechanisms and a clear presentation of the personal benefits.

Trust is the key currency of the digital transformation. And this is precisely where we encounter the greatest reservations – often driven by security concerns.

It is therefore worth taking a closer look at the measures the ECB is taking to address the issue of security.

Taking security concerns seriously – but countering them with facts

A frequently voiced objection concerns the fear of a bank run – i.e. the mass withdrawal of deposits in the digital euro. The ECB is addressing these concerns with a whole package of measures: holding amounts are to be capped (at around 3,000 euros per person), the digital euro will not bear interest, and so-called reverse waterfall mechanisms will automatically return excess amounts to traditional bank accounts.

Historical experience speaks for itself: even when the volume of cash rose to over €1,500 billion between 2007 and 2021, financial stability was maintained. Even when viewed cautiously, it can be said that a systemic bank run is highly unlikely under the planned framework.

Technical security: offline capability, encryption and cyber protection

Security is not just a technical issue, but an emotional one. That is why the ECB is committed to a comprehensive security concept: offline payments are to be made using special smart cards that work without the transfer of sensitive data. PIN protection or biometric procedures ensure security in the event of device loss. In addition, all digital transactions are encrypted, and external security service providers are to carry out regular penetration tests and audits.

For many users, it is particularly important that the digital euro also preserves a degree of anonymity – similar to cash. In countries such as Germany, where privacy is traditionally highly valued, this is a key factor in building trust.

Technically, the digital euro is therefore well secured. However, every technical innovation also needs a legal foundation – especially if it is to become part of everyday life for millions of people. What can banks and companies expect in the future in terms of regulation?

Regulatory change: PSD3, AML and new rules

The upcoming Payment Services Directive 3 (PSD3) and Payment Services Regulation (PSR) will provide a clear regulatory framework for the digital euro. Companies and banks must prepare for new obligations – from the integration of standardised APIs and expanded KYC processes to advanced state-of-the-art encryption (such as post-quantum methods currently in development). A distinction will be made between payment service providers and companies that only use the digital euro for payment processing.

Success factor implementation: From pilot to scaling

The introduction of the digital euro can be divided into three phases: First, the economic potential must be analysed, internal competencies identified and regulatory readiness established. This is followed by technical integration, test runs and security tests. Finally, regular monitoring, user feedback and continuous adaptation – both technical and organisational – are required during ongoing operations.

The early involvement of all relevant stakeholders is crucial for a successful introduction. IT, compliance, product development and marketing should plan together from the outset. External partners such as regulatory authorities or technology providers can also provide important input at an early stage, especially when it comes to standardisation and scalability.

Conclusion: Act now to shape the future

The digital euro is about to be introduced – but its success will not be determined by technology or regulation alone. Rather, it will require a deep understanding of user needs, a robust economic benefit and solid legal safeguards. Companies that invest in these three dimensions today will gain a strategic advantage in the new digital payment landscape.

The digital euro is coming. The decisive factor will be how we shape it – and whether we make it a tool that delivers real added value. Those who act early will not only help shape the future – they will lead the change.