Cashless payments in Italy nearly double since 2022
Cashless transactions in Italy nearly doubled between 2022 and Q2 2026, according to the Bank of Italy. In the first half of 2026, contactless payments accounted for 93 percent of card transactions at physical points of sale.
Debit cards drive payment growth
Cards accounted for most of the increase in cashless transactions as digital payment habits persisted after pandemic restrictions ended.
Debit cards represented 71.9 percent of point-of-sale card transactions in Q2 2026, followed by prepaid cards at 17.1 percent and credit cards at 11 percent.
Mobile devices accounted for 30 percent of physical point-of-sale transactions in H1 2026.
Remote card payments also grew between 2022 and H1 2026, particularly debit card payments.
Credit transfers ranked second by transaction count, with online channels dominant and branch and ATM use declining.
Instant transfers gained share within Single Euro Payments Area (SEPA) schemes, supported by wider access and regulatory changes, but remained a relatively small component.
Cash remains below pre-pandemic levels
Annual ATM withdrawals fell from around 1.4 billion before the pandemic to approximately 1.1 billion in 2020 and subsequently stayed below earlier levels.
ATMs handled more than 88 percent of withdrawals in H1 2026; merchant locations accounted for 0.3 percent in 2025.
Banknote issuance and returns declined over the decade as alternative payments and direct exchanges through cash centres expanded.
Issuance to banks, Poste Italiane and others peaks in Q4 around Christmas; returns peak in Q1. Returns were exceptionally low in Q2 2020 as the pandemic reduced cash circulation.
Open banking extends digital access
Open banking API calls and payments initiated by Payment Initiation Service Providers increased.
With customer consent, authorised providers access account data, initiate payments or check available funds.
The Bank of Italy links this expansion to greater interoperability and integration with digital platforms.