How Italy moved from cash to card payments
For years, Italy was seen as one of the European markets most dependent on cash. In 2025, that label is no longer accurate. More than 60% of retail transactions are now made by card or electronic devices, and the country has passed, for the first time, the halfway mark for consumption paid without cash. The transition has not been linear, and it has not been free from regulatory back-and-forth, but the figures confirm that the trend has consolidated.
Italy as a traditionally cash-dependent market
Until well into the 2010s, Italy consistently ranked among the European countries with the lowest penetration of electronic payments. In 2019, before the pandemic, only 34% of retail transactions in the country were made by card or digital tools, well below the European average. The rest was paid in cash, with direct implications for traceability and the size of the shadow economy.
The weight of cash had two complementary causes. On the one hand, a strong network of small shops, cafés, bars and hospitality businesses that in many cases did not accept cards, especially for low-value payments. On the other, a consumer culture in which cash conveyed a sense of control over spending and privacy from the authorities.
The Italia Cashless Plan and its effects
In December 2020, the Italian government launched the Italia Cashless Plan, a temporary stimulus measure designed to accelerate the use of cards and payment apps. Citizens who made at least 50 electronic payments in a six-month period could receive up to €150 in cashback (10% of spending), while the 100,000 users with the highest number of transactions could access an additional Super Cashback of €1,500 per year. Only in-store purchases in small retail and hospitality counted, with the aim of supporting the sectors most affected by the pandemic and, at the same time, reducing tax evasion.
The measure had a measurable impact on adoption. By mid-2021, more than 5.8 million Italians had registered in the official app and the use of contactless cards grew strongly. The Draghi government suspended the programme halfway through 2021 and the Meloni government did not reactivate it, but the habit acquired during those months remained. Subsequent data shows that the adoption curve did not return to pre-pandemic levels.
How much is paid by card in Italy
In 2025, card payments in Italy reached 12.4 billion transactions, 13.5% more than the previous year, while the total value rose to €506.3 billion. Added to the rest of digital channels (instant transfers, wallets, apps), total electronic transactions are close to 16.5 billion a year, according to Unimpresa’s Centro Studi.
Another figure best summarises the change: 62% of all retail transactions in Italy are now cashless in 2025, almost double the 2019 figure. And the average digital ticket has fallen to €34, a sign that card payment has spread to small everyday purchases such as cafés, pharmacies and kiosks, not only to higher amounts.
The Cashless Index data reported by Il Sole 24 Ore confirms the scale of the gap that still remains: Italy has accelerated, but it is still 21st in the EU by digital transactions per capita, with 181 transactions per person, far from the European leaders.
The factors that have accelerated the shift
Several elements help explain the jump seen in recent years.
The first is the spread of contactless and mobile payments. Apple Pay, Google Pay and Samsung Pay have normalised smartphone payments at supermarket checkouts, on urban transport and in hospitality. Local services such as Satispay and Bancomat Pay have expanded in small retail, and free virtual cards without a bank account issued by electronic money institutions can be linked to Apple Pay or Google Pay to pay directly with a phone.
The second is digitalisation driven by PSD2. Strong authentication, 3D Secure and banking apps on mobile have changed the perception of security around card payments. According to a Bank of Italy study, double authentication has reduced the risk of card fraud by 60% and electronic money fraud by 80%.
The third is regulatory and fiscal pressure. Italy has maintained the cash payment limit at €5,000 per transaction since 2023, and the Lotteria degli Scontrini system remains in force, drawing prizes among consumers who pay electronically. Although not all incentives have been maintained over time, the favourable framework for cashless payments has not been reversed.
What is still needed to converge with the European average
Although the pace of growth is high, Italy remains behind the European Union average in electronic transactions per inhabitant and in the penetration of cashless payments relative to GDP. Countries such as Sweden, Denmark and the Netherlands operate almost entirely without cash in sectors such as hospitality and small retail, while in large rural areas of Italy, card payment is still a minority option.
Even so, according to the ECB Payment statistics for the first half of 2025, card and digital payment activity continues to grow across the euro area, confirming a broader European trend towards electronic payment. Italy’s convergence will depend on POS penetration in small retail, still uneven by region, and on the role played by electronic money institutions and prepaid cards with different top-up methods in covering the gap that traditional banking does not always reach.
The Italian case shows that the transition to card payment does not depend only on available technology, but on the combination of specific incentives, regulatory pressure and adoption by small merchants. Italy has closed, in six years, a gap that had lasted for decades, and in 2025 it has entered the cashless majority for the first time.
Frequently asked questions
How much is paid by card in Italy?
In 2025, 62% of retail transactions in Italy were made by card or electronic payment tools, almost double the figure from 2019. Total card transaction volume reached 12.4 billion, 13.5% more than the previous year.
Does the Italia Cashless Plan still exist?
No. The Italia Cashless Plan was active between December 2020 and June 2021, with 10% cashback for people who made at least 50 electronic payments in a six-month period. The Draghi government suspended the programme and it has not been reactivated. The Lotteria degli Scontrini, a prize draw for consumers who pay electronically, does remain in force.
What is the cash payment limit in Italy?
The legal cash payment limit in Italy is €5,000 per transaction since 2023. Exceeding that threshold in a transaction between individuals or with a merchant can lead to penalties for both the payer and the recipient.
Can I use Bitsa as a prepaid card in Italy?
Yes. Bitsa is available to residents in Italy, Spain, Portugal, France and other countries in the European Economic Area. It can be requested without a bank account, with an instant virtual card after identity verification and a physical card by standard or express delivery.
Which electronic payment methods are most common in Italy?
Bank debit and credit cards remain the main option, followed by contactless smartphone payments (Apple Pay, Google Pay, Samsung Pay). Local services such as Satispay and Bancomat Pay are especially popular in small retail and hospitality. Prepaid card payments are growing among users without a bank account and in online purchases.
Why has Italy traditionally been a cash-based market?
Because of a combination of cultural factors (cash perceived as a form of control and privacy), structural factors (the weight of small retail and hospitality businesses without POS terminals) and regulatory factors (for decades there were no clear incentives for electronic payment). The pandemic, PSD2, the Italia Cashless Plan and the spread of mobile payments have been the main accelerators of change.