From the start of instant cross-border payments in Europe to the launch of the digital Euro

From the start of instant cross-border payments in Europe to the launch of the digital Euro - Portugal Business News

Financial News Europe - From the start of instant cross-border payments in Europe to the launch of the digital Euro, the future is happening now as we are currently witnessing a profound technological revolution that is reshaping economies worldwide. 

An international instant payments system between BANCOMAT Italy, BIZUM Spain, and MB WAY Portugal, is being launched on March 31, 2025, and is bringing European payments to the next level through EuroPA, the European Payments Alliance.   

Payments between Portugal, Spain, Italy and Andorra can now be sent instantly to mobile phone numbers and all banks in the participating countries will be connected by June 2025, connecting more than 50 million users and 186 financial institutions. EuroPA is aligned with European SEPA standards and will expand to non-euro countries.

The EuroPA (European Payments Alliance) is a collaborative effort to achieve P2P interoperability across Europe in order to build a sovereign, Pan-European payments market.

Alongside the cross-border instant payments system being rolled-out in Europe, the digital euro is being developed by the European Central Bank according to the president of Portuguese payment system SIBS that owns the MB Way payment system, Madalena Cascais Tomé, who is already considering using MB Way with digital euros in Brussels.

Why implementing a Digital Euro is especially significant in 2025?  

“Following a prudent risk management approach, introducing a digital euro would minimize the likelihood of adverse economic outcomes in the future and ensure the resilience of our monetary system in an increasingly digital world.

The digital euro is a promising solution to counter these risks and ensure the euro area retains control over its financial future. It would provide a secure, universally accepted digital payment option under European governance, reducing reliance on foreign providers. The digital euro is not just about making sure our monetary system adapts to the digital age. It is about ensuring that Europe controls its monetary and financial destiny, against a backdrop of increasing geopolitical fragmentation,” according to Philip R. Lane, Member of the Executive Board of the ECB, who adds:

“At a time of geopolitical uncertainty and shocks, the euro has maintained its reputation as a strong and stable currency. However, as technology and the economy evolve, we need to ensure that we retain monetary autonomy to preserve monetary stability under all circumstances.”

When will the Digital Euro be launched?

The European Central Bank is working with the national central banks of the euro area to look into the possible issuance of a digital euro. It would be a central bank digital currency, that is an electronic equivalent to cash, and it would complement banknotes and coins, giving people an additional choice about how to pay.

The digital euro would be a European electronic means of payment accessible in all euro area countries and would be available free of charge to everyone. The digital euro would be stored in an electronic wallet set up with banks and public intermediaries that would enable usual electronic payments using a mobile phone or a card, both online and offline.

The ECB is collaborating with potential providers of digital euro components following a tender procedure and key stakeholders, including merchants, payment service providers, fintech companies and universities, will test conditional payments while exploring other innovative use cases for a digital euro.

An outcome report is expected to be published in July 2025 and the ECB’s Governing Council will decide on the possible issuance of a digital euro only once the relevant legislation has been adopted. Draft legislation has already been proposed by the European Commission and is currently under consideration by the Council of the European Union and the European Parliament.