Summary

• The ECB has contracted two network provider groups involving Nexi, Deutsche Telekom, Telefónica, and Indra.
• The first agreement took effect on 28 September 2026; the second begins in May 2027.
• A 12-month pilot is planned from the second half of 2027, while potential issuance remains conditional.

The European Central Bank (ECB) has selected two groups of network service providers to connect banks and national central banks to the planned digital euro infrastructure, advancing technical preparations for a European central bank digital currency.

The agreements involve Nexi Payments and Deutsche Telekom Business Solutions in one group, with Telefónica de España, Telefónica Global Solutions, and Indra Soluciones Tecnologías de la Información forming the other. Together, they will provide connectivity between participating payment service providers and the components of the digital euro service platform.

The procurement outcome was published on 30 October following a process launched in August 2025. The contract with the first-ranked group took effect on 28 September 2026 and initially covers the planned digital euro pilot, while the agreement with the second-ranked group will begin in May 2027.

Both groups are expected to be ready to provide connectivity for possible issuance from 2029, subject to further decisions by the ECB’s Governing Council. Signing infrastructure contracts does not establish that a digital euro will be introduced, although it allows technical work to advance while the legislative and policy processes continue.

Connecting payment providers to central infrastructure

A digital euro would provide a form of central bank money for electronic payments, distributed through payment service providers rather than requiring every individual or business to maintain a direct operational relationship with the ECB. Delivering that model would require banks and other authorised providers to communicate reliably with central infrastructure.

The new contracts cover that communications layer. Payment service providers would connect to the digital euro service platform through one of the selected network groups, enabling messages to pass between participating institutions, national central banks, and the platform’s components.

While connectivity is an essential part of the architecture, it remains distinct from the systems that would maintain digital euro balances or provide payment services to customers. Banks and other providers would still need their own applications, operating processes, and arrangements for serving users.

The ECB has structured the agreements so that payment service providers offering the digital euro could use either network group. Having two contracted options provides institutions with a choice of connectivity supplier, although the central bank has not published comparative pricing, measured performance, or detailed service-level results for the arrangements.

The contracts also allow the ECB to adjust the services it requests as the project progresses. That flexibility is relevant because the technical requirements of a controlled pilot may differ from those of an eventual payment system operating across the euro area.

Capacity, reliability, network management, and security would all need to support the chosen operating model. The ECB can develop these requirements through testing without committing immediately to the complete scope of a future production service.

Pilot preparations move towards practical payments

The ECB plans to begin a 12-month pilot in the second half of 2027, using a beta version of the digital euro to examine technical functionality, operating processes, and the experience of people making payments.

In July, the Eurosystem selected 36 payment service providers from more than 50 applicants. The participating institutions represent different business models and sizes across the euro area, creating a range of technical environments in which the planned payment services can be tested.

The pilot will involve staff from participating central banks and selected merchants, with payment scenarios including person-to-person transfers and purchases. It is intended to provide experience of using the currency in controlled circumstances rather than establish a payment service available to the wider public.

Network connectivity forms part of the preparation for these exercises. Payment providers must integrate their systems with the digital euro platform, complete relevant technical testing, and establish operational arrangements before users can undertake pilot transactions.

That integration involves more than establishing an electronic connection. Providers need processes for identifying and resolving transaction errors, monitoring availability, maintaining records, and ensuring their customer-facing services can exchange information correctly with the central infrastructure.

For institutions already operating payment systems, introducing another service can also affect internal processing, reconciliation, customer support, and technical maintenance. Testing these interactions before any potential issuance allows weaknesses to be identified while participation remains limited.

Infrastructure contracts precede the policy decision

The ECB’s preparations are proceeding alongside the European legislative process governing a possible digital euro. The central bank has indicated that a potential first issuance in 2029 depends on the necessary legislation and a subsequent decision by its Governing Council.

The two network agreements therefore create the capability to prepare and test infrastructure without determining the political or legal outcome. The start of the second agreement in May 2027 will support the next phase of development, but it will not itself give the public access to digital euro accounts.

The arrangement also provides a commercial role for European telecommunications and payments technology suppliers. Nexi, Deutsche Telekom, Telefónica, and Indra will participate in a central bank infrastructure project through their respective contractual groups, although the ECB has not disclosed a detailed breakdown of responsibilities or expenditure within those groups.

Payment services already depend on extensive communications infrastructure, and any new system would have to operate alongside established payment methods. The connectivity arrangements will consequently be evaluated partly through their ability to support reliable interactions between central systems and participating providers.

The ECB’s use of separate provider groups gives the project additional procurement flexibility as requirements develop. Whether that produces measurable improvements in operational resilience or commercial efficiency will depend on the final network design and the results of testing.

During the pilot, the Eurosystem intends to gather evidence about functionality, operational performance, and user experience. Those results will inform the next stages of technical development, alongside decisions about the currency’s legal framework and prospective issuance.

The immediate milestones are the commencement of the second network contract in May 2027 and the start of pilot operations later that year. The selected providers will help establish the communications infrastructure, while the ECB and European lawmakers retain responsibility for the decisions determining whether the digital euro proceeds beyond testing.