Italy's Digital Payment Revolution Leaves Cash in the Dust

The Italian economy has undergone significant changes in payment habits, as reported by the Bank of Italy. In 2025, an astonishing 88% of card payments made at points of sale (POS) were contactless, meaning customers simply needed to hold their cards or mobile devices near a terminal to make a payment. This represents a substantial increase from just four years prior, when this percentage was around 50%. The data suggests that Italy has rapidly adopted digital payment methods.

The Bank of Italy notes that the number of non-cash transactions increased by over 16 billion in 2025, more than doubling since 2018. Mobile payments also saw significant growth, with 24% of POS transactions made using mobile devices such as smartphones or smartwatches. While cash remains the most widely used payment method for individual transactions, digital payments are becoming increasingly popular.

The shift towards digital payments has important implications for cryptocurrencies and stablecoins. As more people become comfortable making payments without physical contact, they will be less resistant to using digital currencies. The challenge for these new technologies is no longer convincing consumers to change their behavior but rather demonstrating their technical superiority behind the scenes.