Digital payments landscape in Italy - statistics & facts
Digital payments in Italy are characterized by its government taking a proactive stance on the matter. This is reflected in 2025 and plans to integrate the PagoPA platform into the public IO app, but also in December 2022. Back then, Italy's parliament wanted to impose a tax on payments firms and banks if they failed to lower fees in card transactions at POS terminals. What digital payment characteristics and payment trends are noteworthy for Italy?
Contactless and wallets will be the way forward for Italy, as its government continues to digitalize payments but without losing control over transaction fees. The question remains, however, where traditional banks will fit in.
Digital payment and costs in Italy
Italy's government heavily promotes alternative payments, especially wallets. Mobile wallet adoption in Italy is, consequently, higher than in most other European countries. This push for mobile and digital wallets comes from Italy's reliance on cash, and a desire to keep the same benefits as cash used to have. Unlike Germany - where the focus is more on privacy - Italy's government does not want transaction costs in payments, especially if they go to banks or digital payment providers. Measures proposed by the government in 2022 to promote cash and curb such costs, were criticized for potentially helping Italy's shadow economy.The IO app and Poste Italiane
A key digital payments trend for Italy in 2025 is the IO app, a government app that allows Italians to store official documents and access public services online. It also facilitates payments towards the public administration, accelerating the public administration's digital transformation. This service was created by PagoPA, a state-owned payments firm, but will be sold to state mint and postal operator Poste Italiane. Poste Italiane is also one of Italy's main brands for remittances and one of the country's largest card issuers. This may explain why Italian banks feel this sale may give the postal company too much influence over payments in Italy.Nexi and co-branding of cards
In terms of mobile payments, Italy has much more success. Fintech company Nexi has been one of Italy's largest public companies for years, and ranks among Europe's biggest merchant acquirers. Nexi facilitates contactless payments via co-branded Visa and Mastercard cards, but also via smartphone or wearable. While it does issue cards, it typically co-brands with the major U.S. card companies or local provider Bancomat. Consequently, Nexi does not show up in figures on the biggest card schemes in Italy.Contactless and wallets will be the way forward for Italy, as its government continues to digitalize payments but without losing control over transaction fees. The question remains, however, where traditional banks will fit in.
