Four percent of Italian households use BNPL services
Only 4 percent of Italian households used Buy Now, Pay Later services in 2022, according to a Banca d'Italia research paper. Adoption was concentrated among younger, digitally active consumers and acted primarily as a complement to revolving credit cards.
Younger and digital profiles lead uptake
Using data from the 2022 Survey on Household Income and Wealth covering 9,641 households, authors Daniele Figoli and Serena Palazzo examine the drivers of Buy Now, Pay Later (BNPL).
Adoption was highest among household heads aged 35 to 44 at 10 percent, followed by those under 35 at 6 percent, while falling to 1 percent for those aged 65 and older.
By profession, managers and employees reported uptake at 11 percent and 9 percent respectively.
Digital engagement proved decisive: BNPL use reached 26 percent among households applying for loans online, 13 percent for Twitter users and 8 percent for home banking users.
Uptake peaked at 7 percent for households earning between €50,000 and €100,000.
Complementing cards and credit limits
BNPL payments were predominantly activated via credit cards (35 percent) and prepaid cards (33 percent), compared with 27 percent for debit cards.
Usage strongly coincided with existing deferred payment mechanisms: 24 percent of revolving credit card users utilised BNPL, versus 4 percent among non-revolving cardholders.
Furthermore, households whose consumer credit applications were rejected showed an adoption rate of 12 percent, rising by 21.2 percentage points in weighted regressions.
Italian market transactions expanded from €1.0 billion in 2021 to €6.8 billion in 2024.
Convenience today, risk tomorrow
Italian BNPL originated as a digital convenience for prime households rather than a distressed borrowing tool.
Yet relying on 2022 data overlooks the risks created by the market's subsequent sevenfold volume expansion.
Swift implementation of the revised Consumer Credit Directive remains vital to protect vulnerable borrowers.