The Digital Euro and A2A Payments: How Will Europe’s Payment Landscape Change?

An interview with Christian Hartmann, Partner at Roland Berger, and Milko Filipov, Senior Manager at valantic, on the digital euro in the context of account-to-account (A2A) payments.

The digital euro seems quite close to A2A payments. How far would you say this comparison holds when we look at the underlying payment architecture?

Milko Filipov: It’s a common assumption that the digital euro is simply another A2A payment because, from a user perspective, it will likely feel very similar: you initiate a payment through your bank or payment service provider (PSP), and it settles digitally, potentially in real time.

The key difference is the type of money being used, not the payment rail. In A2A schemes, payments move between commercial bank deposit accounts. Those deposits are private banks’ liabilities, essentially commercial bank money. A digital euro would be different, acting as central bank money in digital form, a direct Eurosystem liability, available to citizens and businesses.

The distinction is relevant because central bank money anchors a monetary system. A digital euro would preserve that role as payments become increasingly digital. While A2A systems define how money moves, the digital euro is defined by what kind of money it moves and why that matters for the monetary system.

Christian Hartmann: Building on that, from a payment rail perspective, the digital euro would be designed to complement existing A2A solutions, not be a replacement.

European PSPs and A2A schemes could voluntarily integrate it into their existing products (wallets, banking apps, or co-badged cards) through open standards. The private scheme would remain the preferred brand wherever accepted, while the digital euro is the fallback where it’s not.

By establishing a common acceptance standard, the digital euro could even help European A2A solutions scale across the euro area, reduce fragmentation and reliance on external card rails, and lower dependence on international card schemes.

As Europe already has mature A2A payment systems, which use cases will demonstrate the digital euro’s unique value?

Milko Filipov: The discussion becomes particularly interesting here. In my view, the digital euro is not intended to compete on a single use case. Indeed, Europe already has highly efficient payment infrastructures, including A2A payments and established card networks. However, it’s not about the digital euro replicating existing payment journeys, but about adding value in ways current solutions cannot. That is, of course, on top of its role as risk-free central bank money.

The Eurosystem is already exploring several scenarios with the digital euro pilot, like peer-to-peer (P2P) payments using aliases or access numbers, NFC-enabled offline P2P payments, merchant payments at the point-of-sale using SoftPOS-enabled devices, as well as ecommerce and mobile commerce payments.

Technology-wise, one of the most discussed capabilities is the offline functionality. Being able to complete a payment without an internet connection could introduce a level of resilience difficult to achieve with most existing digital payment methods. The offline functionality would bring some cash characteristics into the digital world and, on top of that, include its inherent privacy.

Beyond privacy, I also think consumers will appreciate the free access to basic functionalities and the inclusive design of the digital euro, which is particularly relevant for unbanked and vulnerable groups.

Christian Hartmann: I find the opportunity to create true pan-European interoperability particularly compelling. The ECB hopes to create a digital payment instrument that works consistently across the euro area, regardless of the bank, PSP, wallet provider, or country involved.

A successful digital euro could provide a common payment layer across Europe, reducing fragmentation and ensuring that consumers and merchants can access a consistent payment experience. Merchants would also benefit from the digital euro’s cost-effective design.

Ultimately, the digital euro will succeed if it can deliver additional trust, resilience, sovereignty, accessibility, and European-wide interoperability while integrating seamlessly into everyday payment experiences. In that sense, the digital euro aims to improve individual payment use cases and to strengthen the long-term foundations of Europe’s digital payments ecosystem.

If the digital euro is about more than just payments, where do you see its greatest strategic value for Europe?

Milko Filipov: Here, I believe the discussion moves beyond individual payment transactions into the future of European payments.

Digital payments across the continent remain fragmented and differ significantly from country to country, both in terms of solutions and acceptance. The digital euro could address this by providing a common European payment layer fully available across the euro area.

Standardisation is the strategic element. Through common standards and a shared infrastructure, the digital euro could simplify how banks, fintechs, and payment providers offer truly pan-European solutions. In a market shaped by closed, platform-based ecosystems, it would provide an open, interoperable alternative.

Christian Hartmann: At the same time, many everyday digital payment experiences rely on a relatively small number of global, non-European providers.

The digital euro is an opportunity to introduce a European-governed solution, delivered through European banks and PSPs. For autonomy, this move is strategically important, reducing Europe’s dependency on non-European payment infrastructures while ensuring that a core part of the ecosystem stays aligned with European interests and regulations. In that sense, the digital euro is less a new payment product and more a shared infrastructure – a common acceptance layer that banks and PSPs can use to scale their own solutions.

How would the digital euro be different from stablecoins?

Milko Filipov: The digital euro would be quite different from stablecoins, mainly because of its legal nature and the guarantee behind it. As Eurosystem-issued central bank money, the digital euro is a direct liability of the central bank and always redeemable at par, which, simply put, means that one euro is always one euro.

Stablecoins, by contrast, are issued by private companies, and their value depends on the quality of the issuer’s reserves and how they are managed. Ultimately, stablecoins’ stability depends on private arrangements. It’s not a public guarantee.

So, the key difference is that, by design, the digital euro is risk-free public money, while stablecoins rely on private issuers and reserve management to maintain their value.

Christian Hartmann: I would add that, from a more forward-looking perspective, the interesting aspect of the digital euro is not only how it currently compares to stablecoins, but also how it could evolve within the broader payments and digital asset landscape.

If built on open and interoperable standards, I think the digital euro could, in principle, be integrated into more emerging settlement environments, including the tokenized, DLT-based infrastructures associated primarily with stablecoins. The main idea is that it would bring the core feature of central bank money (risk-free and trusted nature) into whichever technical setup the market evolves towards. To be clear, this is not a design decision the ECB has taken – it is my personal view of how future technology-neutral public money could interact with emerging settlement technologies.

How will the role of banks and PSPs evolve in a digital euro ecosystem?

Milko Filipov: In the ECB’s view, banks and PSPs would clearly remain at the centre of the ecosystem. The digital euro is designed to be intermediated, so customers would continue to access it through their bank or payment provider, via existing apps, wallets, or merchant solutions. In that sense, it builds on the current structure rather than changing it.

Banks and PSPs remain the main interface for customers, while the digital euro is integrated into their existing services. In-app integration may also help them regain access to customers who switched to third-party wallet providers.

The intermediated model also allows the ecosystem to build on existing processes and infrastructures, helping avoid duplication and enabling PSPs to consolidate and modernise payment flows while adding value to the core payment rail. The model also preserves the role of regulated private intermediaries.

Looking ahead, a pilot phase is planned with selected PSPs that took part in the call for expressions of interest. It starts in H2 2027 with 36 selected PSPs and is expected to run for around 12 months, allowing real-world integration and use-case testing in a controlled setup.

Christian Hartmann: I agree and would add that PSPs will actually help shape how the digital euro works in everyday payments. Banks and PSPs should be strategic and ask not whether the digital euro competes with them, but how to use it to compete better. Even now, ahead of the pilot (whether they participate or not), they can start analysing how to integrate it into their systems, align with emerging standards, and how it fits into their current payment flows or merchant solutions.

The timing matters, as the European Parliament’s ECON committee adopted its position on the digital euro regulation in June 2026, trilogue negotiations started, and the co-legislators aim to conclude the framework before 2026 ends. The legal basis is taking shape, so integration is no longer a hypothetical scenario for banks and PSPs. It needs planning.

And then, over time, the real opportunity is in how they use the infrastructure to build (for example, integrating it into wallets, checkout experiences, or merchant acceptance solutions, or connecting it to the EUDI wallet for identity-enabled services) so they can compete on user experience and services, not just on access. Of course, PSPs will also be able to provide and charge for value-added services, such as e-receipts and customer loyalty programmes.

I see PSPs as essential implementation partners and the ones who will truly define how the digital euro feels for end users. For this reason, apart from their role as distribution and acceptance intermediaries, they can also be key in shaping the service layer built on the core payment infrastructure.

This editorial piece was first published in The Paypers' Account-to-Account Payments Report 2026, which features insights into global trends, technologies, partnerships, and the next phase of the A2A evolution. Access the full report to understand where the A2A payments ecosystem stands today and what’s next.

About the authors

Milko Filipov is a Senior Manager and payments & fintech expert at valantic, a digital transformation and AI consulting firm. He has over a decade of experience across banking, PSPs, merchants, and fintech, covering card payments, digital banking, crypto, and payments infrastructure. Milko has contributed to global projects for major enterprises, banks, and schemes, combining strategic insight and hands-on expertise to help organisations modernise and innovate in payments.

 

 

Christian Hartmann is a Partner and a payments, fintech & innovation expert at Roland Berger, a global strategy consulting firm focused on business transformation. He advises banks, PSPs, acquirers, merchants, and investors across the full payments value chain. With a background in engineering and business, he develops and implements innovative strategies that help clients navigate change, drive growth, and succeed in the banking and financial services markets.

 

About valantic

valantic is a fast-growing digital solutions, consulting, and software company specialising in digital transformation and AI. It helps organisations optimise end-to-end processes, improve performance, and unlock value from data and technology. Serving a large base of blue-chip clients, including major DAX companies, valantic combines deep industry expertise with technological excellence to deliver scalable, customer-centric solutions across strategy, implementation, and operations.

 

About Roland Berger

Roland Berger is a global strategy consulting firm focused on transformation, innovation, and sustainability. It supports clients across industries in building resilient business models and navigating digitalisation and market change. With strong expertise in business strategy and operational transformation, Roland Berger works with leading corporations, investors, and institutions worldwide to deliver measurable impact and long-term value in the global economy.