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diff --git a/packages/taler-harness/src/integrationtests/test-merchant-instances.ts b/packages/taler-harness/src/integrationtests/test-merchant-instances.ts
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+++ b/packages/taler-harness/src/integrationtests/test-merchant-instances.ts
@@ -0,0 +1,205 @@
+/*
+ This file is part of GNU Taler
+ (C) 2021 Taler Systems S.A.
+
+ GNU Taler is free software; you can redistribute it and/or modify it under the
+ terms of the GNU General Public License as published by the Free Software
+ Foundation; either version 3, or (at your option) any later version.
+
+ GNU Taler is distributed in the hope that it will be useful, but WITHOUT ANY
+ WARRANTY; without even the implied warranty of MERCHANTABILITY or FITNESS FOR
+ A PARTICULAR PURPOSE.  See the GNU General Public License for more details.
+
+ You should have received a copy of the GNU General Public License along with
+ GNU Taler; see the file COPYING.  If not, see <http://www.gnu.org/licenses/>
+ */
+
+/**
+ * Imports.
+ */
+import { MerchantApiClient, URL } from "@gnu-taler/taler-util";
+import {
+  ExchangeService,
+  GlobalTestState,
+  MerchantService,
+  generateRandomPayto,
+  harnessHttpLib,
+  setupDb,
+} from "../harness/harness.js";
+
+/**
+ * Do basic checks on instance management and authentication.
+ */
+export async function runMerchantInstancesTest(t: GlobalTestState) {
+  // Set up test environment
+
+  const db = await setupDb(t);
+
+  const exchange = ExchangeService.create(t, {
+    name: "testexchange-1",
+    currency: "TESTKUDOS",
+    httpPort: 8081,
+    database: db.connStr,
+  });
+
+  const merchant = await MerchantService.create(t, {
+    name: "testmerchant-1",
+    currency: "TESTKUDOS",
+    httpPort: 8083,
+    database: db.connStr,
+  });
+
+  // We add the exchange to the config, but note that the exchange won't be started.
+  merchant.addExchange(exchange);
+
+  await merchant.start();
+  await merchant.pingUntilAvailable();
+
+  // Base URL for the default instance.
+  const baseUrl = merchant.makeInstanceBaseUrl();
+
+  {
+    const r = await harnessHttpLib.fetch(new URL("config", baseUrl).href);
+    const data = await r.json();
+    console.log(data);
+    t.assertDeepEqual(data.currency, "TESTKUDOS");
+  }
+
+  // Instances should initially be empty
+  {
+    const r = await harnessHttpLib.fetch(
+      new URL("management/instances", baseUrl).href,
+    );
+    const data = await r.json();
+    t.assertDeepEqual(data.instances, []);
+  }
+
+  // Add an instance, no auth!
+  await merchant.addInstanceWithWireAccount({
+    id: "default",
+    name: "Default Instance",
+    paytoUris: [generateRandomPayto("merchant-default")],
+    auth: {
+      method: "external",
+    },
+  });
+
+  // Add it again, should be idempotent
+  await merchant.addInstanceWithWireAccount({
+    id: "default",
+    name: "Default Instance",
+    paytoUris: [generateRandomPayto("merchant-default")],
+    auth: {
+      method: "external",
+    },
+  });
+
+  // Add an instance, no auth!
+  await merchant.addInstanceWithWireAccount({
+    id: "myinst",
+    name: "Second Instance",
+    paytoUris: [generateRandomPayto("merchant-default")],
+    auth: {
+      method: "external",
+    },
+  });
+
+  let merchantClient = new MerchantApiClient(merchant.makeInstanceBaseUrl(), {
+    auth: {
+      method: "external",
+    },
+  });
+
+  {
+    const r = await merchantClient.getInstances();
+    t.assertDeepEqual(r.instances.length, 2);
+  }
+
+  // Check that a "malformed" bearer Authorization header gets ignored
+  {
+    const url = merchant.makeInstanceBaseUrl();
+    const resp = await harnessHttpLib.fetch(
+      new URL("management/instances", url).href,
+      {
+        headers: {
+          Authorization: "foo bar-baz",
+        },
+      },
+    );
+    t.assertDeepEqual(resp.status, 200);
+  }
+
+  {
+    const fullDetails = await merchantClient.getInstanceFullDetails("default");
+    t.assertDeepEqual(fullDetails.auth.method, "external");
+  }
+
+  await merchantClient.changeAuth({
+    method: "token",
+    token: "secret-token:foobar",
+  });
+
+  // Now this should fail, as we didn't change the auth of the client yet.
+  const exc = await t.assertThrowsAsync(async () => {
+    console.log("requesting instances with auth", merchantClient.auth);
+    const resp = await merchantClient.getInstances();
+    console.log("instances result:", resp);
+  });
+
+  console.log(exc);
+  t.assertTrue(exc.errorDetail.httpStatusCode === 401);
+
+  merchantClient = new MerchantApiClient(merchant.makeInstanceBaseUrl(), {
+    auth: {
+      method: "token",
+      token: "secret-token:foobar",
+    },
+  });
+
+  // With the new client auth settings, request should work again.
+  await merchantClient.getInstances();
+
+  // Now, try some variations.
+  {
+    const url = merchant.makeInstanceBaseUrl();
+    const resp = await harnessHttpLib.fetch(
+      new URL("management/instances", url).href,
+      {
+        headers: {
+          // Note the spaces
+          Authorization: "Bearer     secret-token:foobar",
+        },
+      },
+    );
+    t.assertDeepEqual(resp.status, 200);
+  }
+
+  // Check that auth is reported properly
+  {
+    const fullDetails = await merchantClient.getInstanceFullDetails("default");
+    t.assertDeepEqual(fullDetails.auth.method, "token");
+    // Token should *not* be reported back.
+    t.assertDeepEqual(fullDetails.auth.token, undefined);
+  }
+
+  // Check that deleting an instance checks the auth
+  // of the default instance.
+  {
+    const unauthMerchantClient = new MerchantApiClient(
+      merchant.makeInstanceBaseUrl(),
+      {
+        auth: {
+          method: "external",
+        },
+      },
+    );
+
+    const exc = await t.assertThrowsAsync(async () => {
+      await unauthMerchantClient.deleteInstance("myinst");
+    });
+    console.log(exc);
+    t.assertTrue(exc.errorDetail.httpStatusCode === 401);
+  }
+}
+
+runMerchantInstancesTest.suites = ["merchant"];