Payment trends to expect from Italy in 2024: From Mobility as a Service, through to doubling down on secure online transactions

The payments industry is always evolving. Having been a part of it for over two decades at JCB Europe I’ve seen a lot of changes that have impacted merchants, acquirers, and cardmembers. From card-based transactions through to the evolution of contactless and mobile payments – and plenty more in between.

Of course, the speed and type of evolution varies across different markets. The time and scope of change in various markets on the European continent have been different to that in Italy. It’s only by understanding these nuances, and adjusting accordingly, that you can be prepared to evolve.

So, with 2024 just around the corner, what trends can we expect to see in the Italian payments industry? Where should merchants and the consumer be taking closer notice? I’ve made three predictions based on a combination of cultural shifts, industry data, and what I see and hear when speaking to customers and business partners, as part of my role as General Manager of JCB’s Italian Branch.

Navigating the Digital Marketplace: Prioritizing Ecommerce Security for Merchants

Ecommerce is still growing in influence across Italy. Italians still spend less (2.26% of GDP) online than the global average (3.53%). This can be partly attributed to relatively low internet coverage in the region traditionally. But, in 2024, more people will be online than ever before. And Italy has been earmarked as one of the fastest growing online markets across Western Europe, especially with the ecommerce marketplaces spanning the luxury fashion sector.

As more people consider shopping online there is ongoing education to ensure people trust that purchasing online is secure and safe. This will intensify in 2024 as Italian merchants look to compete with global peers for online sales (from Italians and shoppers from other regions). A big part of this will be a drive from Italian merchants to implement – and highlight - secure processes and cybersecurity measures.

This is likely to include everything from making recognisable payment options available and prominently displaying security measures during the checkout process, to allocating budget on security solutions. At JCB, for instance, we’ve seen an increased number of merchants who utilise our J/Secure? service to make sure customers from Asia feel comfortable when spending with online retailers.

The Italian Drive: Transforming Mobility through MaaS

Mobility as a Service (MaaS) - where people book and use multiple mobility services through a joint digital channel – will become increasingly common in Italy’s major cities in 2024. 2023 saw several pilot schemes rolled out across Rome, Naples and Milan, and millions of Euros allocated towards transportation linked to the National Recovery and Resilience Plan. In 2024, this scheme is set to expand into Bari, Florence and Torino.

What does this mean for payments? It will become easier for residents and tourists to travel around these major cities using an app. This “tap and go” option will make a wide variety of transports methods accessible via card payments. JCB aims to be part of this ecosystem to ensure that our cardmembers can take full advantage when visiting some of the most popular tourist destinations across Italy.

Enhancing the Tourism Experience: The Rise of Cashless Payments

MaaS is changing the way visitors to Italy can enjoy the region. But tourist’s attitudes when visiting are changing too. From a JCB perspective, we are seeing our cardmembers exploring (and spending) beyond the traditional tourist hub cities. And, in general, visitors from Asia are travelling independently more often since the end of Covid-19 restrictions.

Tourists want to enjoy everything Italy has to offer in a seamless, stress-free way. This means spending on food, luxury purchases, and famous attractions using cashless options, can happen wherever possible. In 2023, one in four card transactions came from foreign spend.

Italy is increasingly set up for a seamless experience for visitors thanks to a general shift away from cash payments and a more established contactless payment infrastructure that will be strengthened in 2024. Cash payments are still higher than the Eurozone average, but three out of four Italians now see cashless payments as their preferred payment method.

Italian merchants actually now prefer using a point-of-sale device versus accepting cash, and recent government promises to reduce the cost of electronic transactions will encourage small and medium businesses to embrace card payments, too.

When it comes to payment changes, and how it will change the landscape for visitors and residents in Italy, 2024 will be more evolution than revolution. But, by following the key trends we’re likely to see in the coming 12 months, tourists and merchants can make sure that the year ahead is as prosperous as possible. At JCB, we’re committed to helping create this positive environment and experience for our cardmembers, partner merchants and acquirers.