We all know, in Italy the use of cash as a form of payment is still predominant. But this is now also confirmed by a report just published by the Bank of Italy, which conducted a survey classifying Italian consumers into 5 categories, from those who mainly use cash to Italians who adopt more advanced digital solutions. In fact, approximately 1 in 4 Italians (24%) do not use banknotes and pay exclusively with digital tools (such as cards, wallet or other types of e-payment).
The socio-demographic characteristics of the users also influence these preferences: for example, among the consumers who use digital payments the most there are younger people, while among those oriented towards cash the elderly prevail.
The survey clearly showed that cash continues to maintain an important role in our economy: the transition towards digital payments, in fact, is not uniform and adopting alternative behaviors to cash does not necessarily imply the use of more innovative payment solutions. Let’s look in more detail at the 5 profiles outlined by the Bank of Italy.
Traditionalists: those who only use cash in Italy
The majority of the Italian population (50.2%) is classified as traditionalist: they continue to pay with cash and cards in physical stores, but make very limited use of smartphone payments or online purchases. These are therefore people fully integrated into the banking system, with a current account, one or more credit or debit cards and access to online banking services.
In short, they have digital tools at their disposal, but they tend not to use them that often. From a socio-demographic point of view, this category reflects the average Italian population, with a slight prevalence of more mature age groups and average incomes.
Digital-only: 1 in 4 Italians
The second largest group is the one defined as “digital-only”, which includes 24% of Italian consumers: users pay exclusively with electronic tools, from cards to digital wallets and e-payments. In this case it would be natural to think that they are the most technological: the study instead reveals that being “cashless” does not mean being cutting edge. Many of these consumers, in fact, limit themselves to using traditional debit and credit cards, without adopting the most innovative digital solutions. In a certain sense they are traditionalists who have simply reduced the use of cash to zero. Among them are mainly members of Generation Z, i.e. those born between 1997 and 2012.
The well-connected: all types of payments
The well-connected group (14.6% of the sample) includes consumers who use all payment methods: cash, cards, digital wallets, smartphone payments, online and in-store purchases. They are flexible and represent the most integrated segment in the digital economy: not surprisingly, they constitute the profile with the highest share of young people, people with high incomes and with above-average education levels.
Cash lovers: lovers of banknotes
At the other extreme are cash lovers (6.6%), literally “cash lovers”, who rely exclusively on banknotes due to lack of access to digital tools or out of simple choice (linked to greater simplicity or anonymity). They are the group most excluded from the banking system and digital technologies. It is the only group in which the share of women exceeds the national average and where there is a significant presence of self-employed workers, probably linked to the use of cash in commercial transactions. Those over 65, low incomes and lower education levels are also prevalent.
The bank-tech skeptics: the skeptics
Bank-tech skeptics (4.6%), the skeptics of more “tech” solutions, close the classification: they use cash and prepaid cards, but reject the most advanced banking technologies such as debit and/or credit cards and mobile payments. They are partially integrated into the financial system, but are wary of or unaware of digital tools. This profile is highly concentrated in Southern Italy: just like cash lovers, these are mainly elderly people, with low incomes and education, and a high share of unemployed people. When they express interest in new solutions, their priorities are privacy protection and the possibility of paying even offline.
