Italy Payments Market - Growth, Trends, COVID-19 Impact and Forecasts (2022 - 2027)

Italy Payments Market is expected to grow at 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.

Key Highlights

• Visa, American Express, and Discover are the main 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 €10 ($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 will fall 11.7 % in 2020, with goods falling 6.4% and services falling 16.4%. During this year, the use of online payments fell only gradually, with the value of goods and services settled with payment cards, the vast majority of Italian e-payments – falling by 1.4 %. The decrease in household spending increased the value of card payments to 26.7 % of consumer spending, up from 24.1 percent in 2019.

Key Market TrendsIncreasing Digital Payments

• Italy's payments market is evolving in response to consumer behavior. Cashless economies, mobile banking, instant payments, digital commerce, and the growing influence of regulatory agencies are a few trends affecting the payments market.
• Italy's payment preferences are shifting away from cash and credit cards toward digital wallets and buy now, pay later transactions (BNPL). The rise of alternative payment methods and volume moving to credit- and debit-linked digital wallets are all factors contributing to credit cards' declining share.
• One-third of all e-commerce purchases in Italy is made with a digital wallet, frequently funded via a bank account. This is the case with Satispay, an Italian mobile wallet that is spreading to Belgium, France, Germany, and Luxembourg. It enables over 1.5 million loyal customers in Italy to pay for purchases online and in-store, as well as exchange money with friends.
• Cards are Italy's most popular online payment method, accounting for 40% of the market. Their market share is expected to remain stable until 2023. Visa, Mastercard®, and the domestic brand CartaSi are the most popular card brands. PagoBancomat, a local card scheme, is also popular and has invested millions in its digital wallet capabilities.
• Payment instruments enable money to be transferred between parties. The most common distinction is between cash and alternative mechanisms such as cheques, wire transfers, direct debits, debit cards, credit cards, and electronic money. The advancement of information technologies tends to increase the use of the internet and mobile phones for payment (so-called e-payments and m-payments).

Competitive Landscape

Bancomat Pay is a high-potential domestic Italian mobile payment method. Bancomat Pay will now be available to over 37 million Italians with a PagoBancomat debit card for P2P, in-store, and online transactions. Online shoppers in Italy prefer to use their VISA or MasterCard credit, debit, or prepaid card. Most of these cards are distributed under the CartaSi or PostePay brand names. As a result, these two bank brands have been designated as 'payment methods.' furthermore, credit cards, PayPal, and online bank transfers are popular methods of online payment in Italy payment market.

• September 2021- Mastercard expanded its digital asset capabilities with the acquisition of CipherTrace, a leading cryptocurrency intelligence company with insight into over 900 cryptocurrencies. The integrated offering will leverage CipherTrace's digital asset suite and Mastercard's cyber security solutions to provide businesses with greater transparency in identifying and understanding their risks and managing their digital asset regulatory and compliance obligations.
• January 2020- PayPal Holding Inc has partnered up with UnionPay International (UPI) to accelerate the growth of their respective networks. As part of the agreement, PayPal has agreed to support UPI acceptance wherever PayPal is accepted, giving UnionPay cardholders more options when shopping.

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• The market estimate (ME) sheet in Excel format
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