MuchBetter: Why COVID isn’t the only driver for digital payments

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As Italians begin to adapt to a ‘new normal’ following months of lockdown brought about by the pandemic, there has been a considerable shift in the number of people opting to use digital payments. But will this still be the case in years to come?

In the UK, we have become accustomed to features such as contactless cards and ApplePay. But in Italy, a general distrust of their banks means that cash – up until recently – has remained king. 

In this article published in the latest edition of SBC Leaders, formerly SBC Magazine, MuchBetter noted that COVID has been a catalyst for an uptake in digital payments. 

It said: “Italians do not have the same kind of trust in their banks and they love cash – not only for day-to-day spending, but for savings too. Many Italians choose to keep physical cash in a safe space at home rather than a bank account, and many shops, restaurants or bars still don’t accept card payments. 

“For years, despite digitisation elsewhere in Europe, it seemed as though nothing could tip the balance in the favour of digital payments. This could finally be starting to change.”

This shift in the balance between cash and digitised payments cannot be solely attributed to the global pandemic, as MuchBetter believes that operators need to be aware of other drivers for change – including payment security and advances in technology.

MuchBetter added: “Italians are increasingly looking for new ways to use and protect their money. They want secure and easy to use digital money services and are converting their cash to e-money, abandoning their typical bank cards and switching to e-wallets. 

“Digital money solutions are also increasingly appealing to younger demographics who are accustomed to using their smartphones for anything and everything. While digital payments were quite limited five years ago, they have advanced considerably since.”

So will digital payments replace Italy’s beloved cash payments? Or will cash remain king? To read the full piece in SBC Leaders, click here.