The Eurosystem has published a comprehensive payments strategy that takes a cohesive and forward-looking approach to developing an innovative and competitive European payments market across wholesale, business-to-business, retail, and cross-border payments. Released on 31 March 2026, the strategy complements the Eurosystem’s cash strategy and extends its retail payments strategy by covering wholesale, business-to-business, and cross-border payments, while ensuring central bank money remains the anchor of trust and stability amid rapid technological change.

The strategy emerges at a critical juncture for European financial infrastructure. Digitalisation and new technologies—particularly distributed ledger technology and tokenisation—are accelerating the transformation of payments. The Eurosystem's approach is two-pronged: improving existing payment infrastructures while catalysing and supporting new ones. This reflects recognition that legacy systems remain essential even as innovation reshapes the ecosystem.

CENTRAL BANK MONEY ANCHORS STRATEGY

At the heart of the strategy lies a commitment to maintaining the role of central bank money as the anchor of Europe's two-tier monetary system. The Eurosystem has identified four strategic aims: (i) ensuring the effectiveness of monetary policy, financial stability, and smooth payment system functioning; (ii) achieving strategic autonomy and increased resilience for European payments; (iii) fostering an integrated, competitive, and innovative payments ecosystem; and (iv) supporting the international role of the euro. This principle applies across wholesale and retail markets.

For wholesale payments, the strategy commits to continued support and investment in T2, the Eurosystem's real-time gross settlement system, including exploration of extended operating hours. The institution is future-proofing infrastructure through two major initiatives: Pontes and Appia. Pontes aims to deliver a central bank money settlement solution for distributed ledger technology-based wholesale payments by the end of the third quarter of 2026. Appia will address securities transactions. These initiatives ensure that as financial markets adopt distributed ledger technology and tokenised settlement assets, central bank money remains the trusted settlement layer.

TOKENISATION WITH GUARDRAILS

The strategy's position on tokenised settlement assets reflects calibration between innovation and stability. The Eurosystem states that the innovative potential of tokenisation should be leveraged, with central bank money maintained as the anchor for settlement, complemented by private settlement assets. These private settlement assets include tokenised deposits and stablecoins that are EU-governed, euro-denominated, and properly designed and regulated.

This framework welcomes innovation while establishing parameters for digital assets in settlement infrastructure. The stance will influence the operating environment for banks, fintechs, and digital asset providers across the eurozone.

STRATEGIC AUTONOMY AND RESILIENCE

The second strategic aim addresses European reliance on non-European payment infrastructure. Visa and Mastercard process the overwhelming majority of European card transactions, while US cloud providers dominate financial data infrastructure. The strategy signals momentum toward European alternatives, including initiatives such as the European Payments Initiative and its Wero wallet product, which has been rolling out across France, Germany, and Belgium since 2024.

For cross-border payments, the strategy commits to advancing the G20 roadmap for faster, cheaper, more transparent, and inclusive international transfers. This includes expanding linkages between fast payment systems and leveraging tokenisation innovations.

DIGITAL EURO AS CATALYST

The digital euro project serves as a catalyst for retail payment innovation. The strategy positions the digital euro as complementary to market-led solutions, fostering development of pan-European private retail payment solutions at the point of interaction. For business-to-business payments, the strategy calls for standardisation, automation, and process integration to enable companies to benefit from efficient solutions.

The Eurosystem has committed to actively monitoring developments and adapting its strategy as needed, ensuring that Europe's payments landscape remains competitive, innovative, and resilient.