Easier Said Than Done: Why Italians Pay in Cash While Preferring Cashless

Alberto Di Iorio and Giorgia Rocco
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Alberto Di Iorio: Bank of Italy, Directorate General for Currency Circulation and Retail Payments
Giorgia Rocco: Bank of Italy, Directorate General for Currency Circulation and Retail Payments

International Journal of Central Banking, 2025, vol. 21, issue 3, 155-184

Abstract: In this study we use data from the 2019 Study on the Payment Attitudes of Consumers in the Euro Area (SPACE) to analyze the main drivers of payment choices at the point of sale (POS) in Italy. We find that transaction-related features are the most important factors affecting the payment choice at the POS, while individual consumer preferences play a minor role. We also document that consumers often pay in cash, even though they would prefer to use a different payment instrument, due to a lack of acceptance of alternative instruments by merchants, especially for low-value transactions. Finally, consumers’ digital skills are found to be a relevant factor in payment habits since they affect preferences and reduce the likelihood of cash usage, especially for those groups that tend to use it more, such as women and residents in the South.

Date: 2025
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