A wallet for the digital euro: New opportunities for banks and merchants

Question:
What opportunities does the introduction of a digital wallet offer?


Approach:

he digital wallet for the digital euro offers banks and payment service providers the opportunity to expand their range of services in a targeted manner and integrate innovative functions. Personalized services and a seamless user experience can strengthen customer loyalty and create a sustainable competitive advantage. In addition, the digital wallet promotes the digitization and modernization of existing payment systems. Efficiency gains, streamlined processes, and improved user-friendliness help to take the customer experience to a new level. Companies that embrace this technology at an early stage position themselves as innovation leaders and secure their long-term market position in an increasingly digital financial environment.

Question:
What are the risks of introducing a digital wallet?


Approach:

The development of a digital wallet requires initial investment as well as development effort and continuous maintenance. In addition, strict regulatory requirements pose challenges for banks and payment service providers as well as central banks.
The growing market intensifies competition, while dependencies on the ECB’s solutions can limit one’s own flexibility. A clear strategy is crucial to minimise these risks and remain competitive in the long term

Question:
What should be the focus when introducing a digital wallet?


Approach:

User-friendliness and security are paramount in the development of the digital wallet. Intuitive operation and seamless integration are crucial to ensure broad adoption. At the same time, the wallet must meet the highest security standards to protect sensitive data and create trust.

Question:
Which actors are affected?


Approach:

The introduction of the digital wallet affects numerous stakeholders. Payment institutions, especially banks, must issue, manage and integrate wallets for the digital euro into existing systems. Merchants are required to accept payments via wallet, as the digital euro is considered legal tender. Both groups of actors are crucial for the successful establishment of the digital wallet in payment transactions. The ECB must create the framework conditions and is responsible for the central infrastructure.