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Italy Payments Market Size (2024 - 2029)

The Italian payments market is experiencing significant growth, driven by government initiatives to promote digital transactions and reduce cash usage. The market's expansion is supported by the increasing adoption of mobile and card payments, facilitated by improvements in e-commerce infrastructure. Despite the challenges posed by the COVID-19 pandemic, the market's resilience is evident, with minimal impact on the overall consumption and payment trends. The collaboration between key players and financial institutions further enhances the market's capacity to adapt and grow.

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Market Size of Italy Payments Industry

Italy Payment Market
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 11.04 %
Market Concentration Medium

Major Players

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*Disclaimer: Major Players sorted in no particular order

Italy Payments Market Analysis

The Italian payments market is expected to register a CAGR of 11.04 % from 2022 to 2027. The Italian government and central bank-sponsored electronic payments. In October 2019, the government announced the Progetto Italia Cashless plan, which aims to promote digital payments and eliminate the use of cash.

  • Visa, American Express, and Discover are key competitors in the Italian payment market. American Express and Discover provide credit cards to consumers directly instead of Mastercard and Visa, which offer through banks and third-party providers. Mastercard and Visa have a near-duopoly on the payment processing market with this offering.
  • Nexi (the country's leading acquirer) partnered with its financial institutions to launch the Micropayments refund initiative in August 2020 to increase card acceptance among small merchants in the Italy market. Small merchants are eligible for a refund on merchant fees of up to EUR 10 (USD 11.23) through this initiative until December 2021. This applies to payments made using Visa, Mastercard, and Bancomat payment cards at physical and virtual POS terminals.
  • Mobile payments are used for various operations, such as ordering takeout food, purchasing movie tickets, and upgrading smartphone games, which is expected to drive the growth of the Italian market. In addition, the use of debit or credit cards to make these payments is increasing in both developed and developing countries. This factor is expected to boost the market's growth even further. This is due to the fact that card information can be saved on mobile phones, and payments can be quickly processed.
  • E-commerce improvements made to meet COVID-19 requirements would most likely be carried over into Italian e-commerce in the future. For example, in Italy, online service providers such as Uber upgraded their infrastructure to allow merchants to receive payments daily rather than weekly, and they expanded the number of devices merchants can use to process orders.
  • The COVID-19 pandemic had little impact on the Italian economy. According to the Bank of Italy, overall consumption was estimated to decline by 11.7 % in 2020, with goods falling 6.4% and services falling 16.4%. During this year, the use of online payments fell gradually, with the value of goods and services settled with payment cards, the vast majority of Italian e-payments - falling negligibly.

Italy Payments Industry Segmentation

Payments are increasingly becoming cashless, and the industry's role in fostering inclusion has become a top priority. Payments contribute to developing digital economies and drive innovation, all while serving as a stable backbone worldwide.

The Italy payments market is divided into two segments: by mode of payment (point of sale (card payments, digital wallet, cash), online sale (card payments, digital wallet)), and by end-user industries (retail, entertainment, healthcare, hospitality).

By Mode of Payment
Point of Sale
Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
Digital Wallet (includes Mobile Wallets)
Cash
Others
Online Sale
Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
Digital Wallet (includes Mobile Wallets)
Others (includes Cash on Delivery, Bank Transfer, and Buy Now, Pay Later)
By End-user Industry
Retail
Entertainment
Healthcare
Hospitality
Other End-user Industries
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Italy Payments Market Size Summary

The Italian payments market is undergoing significant transformation, driven by a shift towards digital and mobile payment solutions. Government initiatives like the Progetto Italia Cashless plan aim to reduce cash usage and promote electronic payments. Key players such as Visa, American Express, and Discover dominate the market, with Mastercard and Visa holding a near-duopoly in payment processing. The rise of mobile payments and digital wallets, such as Satispay, is reshaping consumer preferences, moving away from traditional cash and credit card transactions. This shift is further supported by advancements in e-commerce and mobile banking, which offer convenience and enhanced security features like face recognition. The COVID-19 pandemic has accelerated these trends, with online payment methods gaining traction as businesses adapted to new consumer behaviors.

The market is also witnessing the expansion of alternative payment methods, including buy now, pay later options, which are gaining popularity among Italian consumers. The increasing internet penetration and digitalization in Italy present substantial growth opportunities for the payments industry. Domestic and international e-commerce activities are on the rise, with Italian consumers showing a willingness to engage in cross-border purchases. Payment instruments such as debit and credit cards, electronic money, and mobile payment solutions like Bancomat Pay are becoming more prevalent. Strategic partnerships and acquisitions, such as Worldline's acquisition of Axepta Italy, are enhancing the market's scale and reach, further driving the evolution of the payments landscape in Italy.

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Italy Payments Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Stakeholder Analysis

    3. 1.3 Industry Attractiveness-Porter's Five Force Analysis

      1. 1.3.1 Bargaining Power of Suppliers

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

    4. 1.4 Evolution of the payments landscape in the country

    5. 1.5 Key market trends pertaining to the growth of cashless transaction in the country

    6. 1.6 Impact of COVID-19 on the payments market in the country

  2. 2. Market Segmentation

    1. 2.1 By Mode of Payment

      1. 2.1.1 Point of Sale

        1. 2.1.1.1 Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)

        2. 2.1.1.2 Digital Wallet (includes Mobile Wallets)

        3. 2.1.1.3 Cash

        4. 2.1.1.4 Others

      2. 2.1.2 Online Sale

        1. 2.1.2.1 Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)

        2. 2.1.2.2 Digital Wallet (includes Mobile Wallets)

        3. 2.1.2.3 Others (includes Cash on Delivery, Bank Transfer, and Buy Now, Pay Later)

    2. 2.2 By End-user Industry

      1. 2.2.1 Retail

      2. 2.2.2 Entertainment

      3. 2.2.3 Healthcare

      4. 2.2.4 Hospitality

      5. 2.2.5 Other End-user Industries

Italy Payments Market Size FAQs

The Italy Payments Market is projected to register a CAGR of 11.04% during the forecast period (2024-2029)

Bancomat Pay, Master card, PayPal Holdings, Inc., Amazon Pay and Visa Inc. are the major companies operating in the Italy Payments Market.

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Italy Payments Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)