ECB partners with tech consortium to deliver digital euro offline

The European Central Bank has finalised a framework agreement with a consortium led by Giesecke+Devrient, partnering with Nexi and Capgemini, to deliver an offline payment solution for the digital euro. This follows the completion of a public procurement process and is regarded as a significant step toward the potential rollout of a central bank digital currency across the euro area.

Offline payments

The agreement focuses on providing end-to-end technology enabling users and merchants to make digital euro payments even in offline environments. This means transactions could be completed without the need for internet or power, addressing concerns about accessibility and continuity of payments during network disruptions.

The offline solution is designed to ensure settlement of payments locally on users' devices, such as smartphones or cards. Transactions would be private, with no payment details recorded by banks, payment service providers, or central banks. This arrangement is intended to replicate the privacy and resilience characteristics of cash in digital form.

Privacy and resilience

The digital euro aims to complement existing banknotes and coins, rather than replace them. According to the framework, users would be able to store money directly on their devices and pay at any time and place within the euro area. The design criteria set by the central bank prioritise both data privacy and the ability to pay without infrastructure, positioning the digital euro as a universal means of payment.

The cooperation led by Giesecke+Devrient, supported by Nexi and Capgemini, will handle the integration of the offline component into the overall architecture of the digital euro. This includes design, development, and testing of the required technologies and interfaces.

Project consortium

Giesecke+Devrient brings experience in SecurityTech and public currency systems. Nexi provides payment technology and transaction acceptance infrastructure. Capgemini contributes technology consulting expertise, including in the testing and implementation of financial platforms.

"We are proud to lead this pan-European cooperation, working together with our partners Nexi and Capgemini to bring the digital euro's offline capabilities to life. This milestone underscores our commitment to innovation and security in digital payment solutions while preserving the privacy and resilience that citizens expect from cash. We are honoured to partner with the European Central Bank in shaping the future of public money for generations to come," said Dr. Wolfram Seidemann, CEO, Giesecke+Devrient Currency Technology.

Integration and next steps

Following the framework agreement, the consortium will work with the ECB to finalise planning and timelines for the next phases of development. The scope includes design, integration, and development of the Digital Euro Service Platform, which forms the backbone of the offline and online digital euro payment systems.

The ECB is overseeing the project in accordance with EU legislation and under the authority of its Governing Council. The framework agreement also allows other selected tenderers to participate in various aspects of the digital euro infrastructure as required.

"As we accelerate the digitization of payments across Europe, our ambition is to enable solutions that are not only innovative, but also resilient. We're proud to contribute to the development of such an important part of the infrastructure for the digital euro leveraging our strength and knowledge within acceptance technology, that will help ensure seamless payments, also in situations where the terminal is offline," said Renato Martini, Digital Banking Solutions Director, Nexi Group.

"As part of an exclusive team, Capgemini has been selected, in its role as partner of Giesecke+Devrient, to support the ECB in developing the key interfaces and testing the offline functionalities of the digital euro. With in-depth development and testing expertise across various industries, we will ensure seamless implementation of the solutions. This assignment strengthens Capgemini's position as a leading partner for digital transformation in the financial sector. We look forward to working with our valued partners Giesecke+Devrient and Nexi to develop a secure, user-centric and future-proof solution for European payments," said Joachim von Puttkamer, Head of Capgemini's Financial Services practice in Germany.