The Italy cards and payments market size was valued at USD 13.80 billion in 2024. This market is expected to grow at a CAGR of 6% from 2025 to 2033 and be worth USD 23.31 billion by 2033 from USD 14.63 billion in 2025.
One of the primary drivers of Italy’s cards and payments market is the accelerated shift toward digital payment methods following the pandemic, as consumer behavior evolved toward contactless and online transactions. According to Banca d'Italia (Bank of Italy), in 2023, card-based transactions increased significantly compared to the previous year, reaching a total value of approximately €1.6 trillion. Contactless card usage surged, with a notable share of point-of-sale (POS) transactions under €50 conducted via contactless methods, up from just 35% in 2019. Apart from these, mobile wallet adoption through platforms such as Apple Pay, Google Pay, and local solutions like Satispay grew significantly. These trends reflect a broader cultural shift toward convenience-driven financial behavior, supported by strong telecom infrastructure and government incentives encouraging digital transactions.
Another key driver of Italy's cards and payments market is the government’s proactive push for financial inclusion and digital transformation through targeted policies and incentives. The Italian Ministry of Economy and Finance introduced the "Cashback Italia" program in 2021, which rewarded consumers for making digital transactions, leading to a significant spike in card usage. Although the initiative was phased out in 2023, it had already contributed to a structural change in consumer habits, increasing digital payment adoption. Also, the introduction of PagoPA, the national digital payment system for public services, has expanded access to secure electronic payments across all regions.
A major restraint on Italy’s cards and payments market is the continued dominance of cash-based transactions among older generations and small-to-medium enterprises (SMEs). According to a 2023 survey by SWG Research Institute, a significant portion of individuals aged 65 and above used cash for a notable share of their daily purchases, citing concerns about security, lack of trust in digital systems, and ease of budgeting. Similarly, Confcommercio reported that only a limited percentage of SMEs accepted non-cash payments regularly, largely due to high transaction fees and limited technical know-how. Banca d'Italia noted that in 2023, cash-in-circulation still accounted for approximately 48% of total retail transactions by volume. This behavioral inertia slows down the transition to a fully digitized payment ecosystem and requires targeted education campaigns and cost-reduction strategies to encourage broader adoption.
Another key constraint in Italy's cards and payments market is the fragmentation of payment platforms, which limits interoperability and creates inefficiencies in the digital payment landscape. Unlike unified systems seen in countries like Sweden or Singapore, Italy hosts a wide array of competing mobile and QR code-based payment solutions, including Satispay, Nexi, PayPal, and various bank-specific apps. According to a 2023 report by McKinsey & Company, there were over 25 active digital payment providers operating in Italy, leading to duplication of infrastructure and reduced economies of scale. Without greater collaboration between providers or regulatory intervention to standardize payment protocols, this fragmentation may continue to hinder the seamless expansion of Italy’s digital payment ecosystem.
A growing opportunity in Italy’s cards and payments market is the rapid expansion of Buy Now, Pay Later (BNPL) services, particularly within the e-commerce and retail sectors. Data from the Italian Banking Association (ABI) indicates that BNPL transaction value reached €6.8 billion in 2023, reflecting a 35% annual increase. As regulatory frameworks evolve to accommodate BNPL while ensuring consumer protection, this segment is poised to become a mainstream alternative to traditional credit cards, offering substantial revenue opportunities for payment providers.
The emergence of super app ecosystems presents a transformative opportunity for Italy’s cards and payments market, allowing non-financial platforms from ride-hailing apps to entertainment services to integrate payment and credit services directly into their interfaces. Satispay, Nexi, and Revolut have been leading this trend, offering comprehensive financial ecosystems that serve millions of users daily. Satispay reported processing over €8 billion in transaction value in 2023, reflecting a 40% annual increase. These super apps are not only enhancing financial inclusion but also driving card-linked payments, QR code transactions, and peer-to-peer transfers.
Despite Italy’s advanced digital payment infrastructure, the sector faces a growing challenge from increasingly sophisticated financial fraud and identity theft schemes. According to the Italian Postal Police Department, reports of online payment fraud increased by 32% in 2023 compared to the previous year, with total losses surpassing €1.1 billion. Phishing attacks, fake merchant sites, and synthetic identity fraud have become more prevalent, exploiting weaknesses in multi-factor authentication and consumer awareness. Banca d'Italia highlighted in its 2023 annual report that card-not-present (CNP) fraud accounted for over 63% of all digital payment fraud cases. Although major banks like Intesa Sanpaolo and UniCredit have implemented AI-based fraud detection systems, many consumers, especially seniors, are still vulnerable to social engineering tactics.
While Italy maintains a progressive regulatory framework for digital finance, emerging fintech startups face challenges related to regulatory complexity and compliance costs. The implementation of PSD2, along with stringent anti-money laundering (AML) and know-your-customer (KYC) requirements, has increased operational burdens for new entrants. Startups also face ongoing reporting obligations and capital adequacy rules that can hinder agility and speed to market. While regulation ensures financial stability and consumer protection, streamlining oversight and improving dialogue between regulators and innovators could help accelerate the development of next-generation payment solutions in Italy.
The emergence of digital-only banks in Italy, like the German-based mobile-only bank N26, allows consumers to do complete banking transactions on their mobile phones. Hello Bank! by Banca Nazionale del Lavoro (BNL), and UniCredit Bank's mobile-only buddybank with services like current accounts, credit and debit cards, personal loans, and 24/7 personal assistance.
The advent of foreign payment service providers in alternative payments such as Apple Pay, Seqr mobile payment app by Sweden's Seamless, US's Boku acquisition of mobile view Italia, and the partnership of Vodafone and PayPal allowing contactless payments for the customers by linking their accounts to Vodafone wallet is pushing the local payments markets.
Government initiatives to promote cashless and electronic transactions, like the No Cash Day Project and National project in association with Maestro, Mastercard, Visa, UBI Banca, Bancomat Consortium, and Banco Popolare. The daily and monthly coupons offered on the transactions resulted in making Bergamo a cashless city by adopting electronic payments.
Top players in the Norway cards and payments market include BancoPosta, Poste Italiane, Banca Nazionale del Lavoro, Intesa Sanpaolo, UniCredit Bankken, and others.
Frequently Asked Questions
Italy is experiencing a shift from cash towards digital payments, with cards and mobile wallets gaining popularity. While cash is still widely used, especially for small transactions, there's a growing preference for electronic payment methods, particularly among younger consumers.
Debit cards are the most popular type of card payment in Italy. They dominate the market and are widely used for daily transactions
Mobile payments are gaining traction in Italy, particularly among younger consumers. Apps like Satispay and bank-specific mobile payment solutions are becoming more popular for both online and in-store purchases
The market is expected to continue its shift towards digital payments, with further growth in contactless transactions, mobile payments, and alternative payment methods like Buy Now Pay Later (BNPL). The role of cash is likely to continue decreasing, especially for larger transactions
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