The digital euro could transform Europe’s financial system--but only if consumers see the value in using it, warns Robert Bueninck, CEO of payments provider Unzer. In an interview with Paperjam, Bueninck offered an assessment of the European Central Bank’s flagship central bank digital currency (CBDC) initiative, drawing on his experience leading a firm that processed €22bn in transactions in 2024.

Headquartered in Berlin, Unzer expanded its footprint with the opening of a in Munsbach, Luxembourg, in November 2024. The company provides a suite of payment and software solutions for retailers, spanning online checkouts, in-store mobile terminals and final settlement.

“I believe the digital euro is a promising initiative that could significantly modernise Europe’s payments landscape,” Bueninck said. But success will depend less on technological readiness and more on “whether consumers see a clear benefit in adopting it.”

Real-world value

Bueninck argued, “Consumers are unlikely to change their habits unless the digital euro offers a clear advantage over existing solutions like Apple Pay or PayPal.”

Although the digital euro could bolster Europe’s financial sovereignty and offer a “secure, real-time and universally accepted payment solution across the eurozone,” that won’t be enough on its own. Talking from experience, “payment habits are deeply ingrained,” he stressed, and unless there are “tangible benefits over existing methods,” adoption will be slow.

He warned of operational and technical challenges as well. “Europe’s payments landscape is already highly fragmented, so achieving consistent adoption across all member states could prove difficult.” Changing payment systems is no small task. “Think of it like a railroad network: you can change the train, but you must ensure it works with the existing rails--otherwise, replacing the entire network would be extremely costly and time-consuming.”

Making digital euros work in everyday life

A key point of concern for Bueninck is how consumers will access and use digital euros. “If it requires a consumer to download, install and set up yet another digital wallet on their phone the barrier to adoption is high,” he said. Moreover, “the wallets will not act like a bank account with interest, they’ll simply store digital cash. Transferring money into the wallet must be quick and simple, or people won’t adopt it.”

“What is the benefit of storing cash in this wallet compared to where it is currently kept?” he asked.

He also noted that the ECB plans to cap how much digital euro a person can hold, mainly to protect the banking system. “Fair enough. But if that limit ends up being too low, it will only limit its claim as an alternative.”

Mandating merchant acceptance

The ECB may require shops, restaurants and service providers to accept the digital euro--but that’s only half the battle. “Forcing everyday consumers to actually use the digital euro? That’s going to be even more of a challenge,” Bueninck said. “It has to be extremely easy, completely secure, and fit seamlessly into their daily lives. And this is just hygiene--we need to offer additional benefits beyond that.”

If the system works well, though, it could spark rapid change. “If it succeeds in this, I could easily see adoption taking off--just like how contactless payments exploded during the covid-19 pandemic.”

Adoption by younger generations

While Gen Z and millennials are more open to new digital tools, Bueninck is of the opinion that even they won’t adopt the digital euro without a compelling reason. “There needs to be a clear and compelling reason for consumers to switch,” he said. He acknowledged that reducing Europe’s reliance on international card schemes and foreign wallet providers could be a driver, but cautioned: “Consumers typically don’t act based on political considerations--practicality and ease of use matter much more to them.”

What’s next

If the digital euro catches on, Bueninck sees potential upside for “e-commerce and retail” through faster settlement and lower fees, along with new payment models like internet-of-things-based automation. But established players could be at risk. “Some established card schemes and cross-border payment providers could come under pressure if the digital euro offers a simpler, cheaper alternative.”

Nonetheless, the payments industry is used to adapting quickly. “The payments sector moves fast and has a great track record of adapting to new technologies,” he said. “For payment service providers like us, the digital euro will simply become another option we offer alongside the payment methods people already know and use.”

Unzer has no immediate plans to launch user surveys around the digital euro. “There are still too many open questions from the ECB,” Bueninck explained. With the ECB aiming to finalise its phase I preparations by October 2025, the timeline for actual rollout remains unclear. “While the groundwork is being laid, we have to see when the full rollout will take place.”