Paying with a card does not necessarily mean you have truly entered digital finance. This is one of the data that emerges from the new Bank of Italy study on the payment habits of Italians.
Through spending diaries, questionnaires and artificial intelligence techniques, the researchers identified five profiles. Half of Italians continue to alternate cash and cards, 24% have completely abandoned cash, but only 14.6% continuously use different tools and channels, from online purchases to payments via mobile devices.
The question is no longer whether cash is disappearing. As already shown by the analysis of contactless used in 88% of card transactions, the payment gesture has become faster and more invisible. The new research therefore takes a further step: it shows that the way we pay also reflects the relationship with savings, credit, investments and banking services.
The five profiles identified by the Bank of Italy
The Bank of Italy’s research on payment habits uses Italian data from the Eurosystem’s SPACE 2024 survey, based on 4,088 people. A first sample of 840 respondents was classified by combining human evaluation and Large Language Models. Subsequently, four supervised learning algorithms extended the classification to the entire sample.
| Profile | Share | Prevailing behavior | Relationship with finance |
|---|---|---|---|
| Traditionalists | 50.2% | Cash and cards in physical stores | Integrated into banks, cautious about new services |
| Digital only | 24% | No use of cash | Cashless, but not always technologically advanced users |
| Well connected | 14.6% | Cards, cash, wallets and online channels | High banking and digital integration |
| Cash lovers | 6.6% | Almost exclusive use of cash | Reduced access to accounts and financial products |
| Skeptical towards the digital bank | 4.6% | Cash and prepaid cards | Only partial banking integration |
The majority is, therefore, made up of traditionalists: they have an account, use cards and can access loans and savings tools, but make little use of wallets, mobile payments and remote purchases.
The most interesting result, however, concerns the comparison between “digital only” and “well connected” users. The former do not use banknotes, but use other instruments less intensively than the latter. Being cashless, the study observes, does not automatically equate to being technologically advanced.
Because the way you pay also tells about savings and debts
The choice between cash, card and smartphone is not just a practical preference. The five groups also show differences in the management of personal finances.
Cash lovers and digital banking skeptics have lower-than-average access to savings, loans and investment accounts. They most frequently receive income in cash and show very limited interest in instant transfers, online banking and crypto-assets.
Traditionalists, however, are the only group above the national average for both savings and investments. Their behavior appears conservative, but financially stable: they use the main banking services without necessarily chasing every innovation.
The surprise comes from well-connected users and exclusively digital ones. Both have lower-than-average savings and higher debt exposure, while investment remains close to overall population levels.
Technology, therefore, makes it easier to carry out a transaction, but it does not guarantee greater ability to save or less financial exposure. The study also invites us to carefully observe tools such as Buy Now Pay Later, halfway between payment facilitation and new debt.
The prepaid card may report incomplete access
The category of “digital banking skeptics” deserves particular attention. These consumers use cash and prepaid cards, but tend to avoid debit, credit and mobile payment cards.
A prepaid card can be used without opening a checking account. For this reason it represents a useful tool for controlling spending, purchasing online or receiving certain sums. At the same time, it can be the only bridge to the financial system for those who do not have or do not want to use a traditional bank account.
According to the study, this group includes older people, people with lower than average incomes and education levels and residents in southern regions. It is therefore not just a question of cultural resistance: digital skills, trust, economic conditions and accessibility of services can have an impact.
What changes for banks and customers
For banks and payment operators, treating all customers the same can become ineffective. Well-connected users look for speed, security and new features. Skeptics are more sensitive to privacy and the possibility of paying even without connection. Cash lovers place greater importance on simplicity and low costs.
The classification can, therefore, help to design different services:
- simpler applications for those with limited digital skills
- offline tools to prevent a network outage from preventing you from paying
- greater transparency on costs
- assistance that is not exclusively digital
- security systems that are understandable even to less experienced users
- differentiated financial education courses.
The study also concerns the digital euro project, intended to compete with cards and private payments. A digital public currency will not be able to address only the 15% of the most advanced users. To be inclusive, it will also have to work for those who rarely use online banking, fear losing control over spending or value the confidentiality of cash.
The AI did not check the Italians’ accounts
The word “profiling” can generate a misunderstanding. The Bank of Italy has not used artificial intelligence to access current accounts or follow citizens’ purchases in real time.
The algorithms classified the responses collected in the survey diaries and questionnaires. Furthermore, the five profiles are statistical categories: they do not represent assessments of the creditworthiness of individuals and have not been used to grant loans or propose commercial products.
The real financial message of the research is another: inclusion begins with the ability to pay, but does not end with having a card. There remains a wide gap between formal access to banking and conscious participation in the digital economy. And it is precisely in that space that the future of financial services and the spread of the digital euro will be played out.
