This article aims to give you an overview of the current state of digital payments in Italy. In particular, we will focus on their impact on purchasing dynamics, fraud, and tax evasion. Moreover, you will discover how these methods of payment can change the way you make payments. You will find out which trends are most likely to continue to grow in the coming years. If you’re interested in this sector, keep reading! Let’s take a look at the main drivers of this innovation. Go to https://www.affaritaliani.it/fed-forum-economia-digitale-a-milano-il-22-marzo-il-futuro-adesso-469858.html to learn more.
Growth of digital payments in Italy
The growth of digital payments in Italy is a recent development, with the number of transactions increasing to 270 billion Euros in 2019. However, the average value of these transactions fell by three percent in 2018 compared to 2017. As a result, the Italian economy continues to lose money as consumers increasingly switch to digital payments to make everyday purchases. However, it is important to note that most stores are already digitally-prepared, with six in ten users owning either a debit or prepaid card.
In Italy, banks are eager to adopt digital payment services. The transition from paper-based instruments to online tools, remote dialogue solutions with customers, and automation of internal processes have all been accelerated. More than half of Italian banks expect to offer several digital services in the coming years, and they are aligning themselves with the Big Data and Fintech fields to take advantage of the opportunities offered by the digital payments industry. In the coming years, payments will continue to rise, and Italy will become a global leader in digital payments.
The study conducted by Deloitte surveyed Italian and international clients. The survey sampled 50 firms in seven European countries. Of these, 44% were banks, building societies, trade associations, and technical service providers. Ten percent were merchant acquiring banks, mostly universal and retail focused, but there were a few firms that focused on corporate payments. The data presented here are some of the most recent trends in Italy. There are several other factors that contribute to the growth of digital payments in Italy.
Impact of digital payments on consumption and purchasing dynamics
We explored the effect of mobile payment adoption in China and Italy and found that both countries have significant differences in adoption of mobile payments. While Chinese consumers are among the most adept at using mobile payments, Italian consumers lag behind in the use of this technology. In addition, Italians have the highest number of daily cash transactions per capita in Europe. Thus, policy makers need to work with mobile payment providers and consumers to develop an efficient and effective mobile payment system.
Although digital payments are still in the early stages, they have already significantly affected Italy’s consumption and purchasing dynamics. The increase in digital payments went hand in hand with the rise in e-commerce. Among e-commerce purchases, 31% are linked to physical goods. Meanwhile, about 15% of electronic payments are linked to mobile services, phone top-ups, and bills. In Italy, 2020 was the year for contactless payments, ranging from smartphones and cards to wearables. In Italy, the Cashless Italy Plan aims to accelerate the shift to digital payments, but has been controversial due to controversial measures such as the State Cashback program and the receipt lottery.
The adoption of digital payments is driven by merchants’ acceptance of the new payment method. However, consumers will need to find value in it and feel comfortable using it. Unless a payment option is accompanied by compelling features, consumers will not switch to it quickly. Therefore, the implementation of digital payment systems should start by demonstrating compelling benefits for consumers and merchants alike. These benefits will be more apparent in the following years.
Impact of digital payments on fraud and tax evasion
With the rise of digital payments, the Italian government is hoping to boost the fight against fraud and tax evasion. But to make this happen, we must first change our habits and mindset. The introduction of two-factor authentication (SCA), otherwise known as Strong Customer Authentication, is a significant step forward. SCA is an effective tool for protecting user data and making the payment process traceable.
Using this method, we compare the responses of Italian and US citizens in a simple tax compliance experiment. We ask subjects to make identical decisions about tax payments but then ask them to pay their taxes to real-world institutions. While Italians are more willing to comply in the abstract than their American counterparts, they behave differently in real life. Increasing transparency and granting citizens more control over their tax money will help improve the citizens’ trust in the government.
The introduction of e-invoicing across the EU has also helped combat tax fraud and evasion. Governments are adopting new norms to promote e-invoicing across the EU. In Italy, a number of public organizations have made it compulsory for businesses to switch over to e-invoicing. However, these policies are not a panacea for the tax-evasion problem.