The Cards and Payments Industry in Italy: Emerging Trends and Opportunities to 2019

Although Italy is one of the world’s most developed economies, high unemployment and political instability adversely affected its economy during the review period. Real GDP growth rate contracted from 1.7% in 2010 to -0.4% in 2014. The economy is expected to stabilize over the forecast period, with the GDP growth rate increasing from 0.6% in 2015 to 1.1% in 2019.

In an attempt to boost growth, the Italian government announced a reduction in income tax, and introduced a labor reform to amend the country’s unemployment welfare scheme, reform employment contracts and improve employment agencies in 2014. Nominal GDP per capita is anticipated to increase over the forecast period to US$34,912.9 (EUR 29,950.4) by 2019.

The Bank of Italy, the central bank, regulates and manages payment systems in Italy. The Consolidated Law on Finance provides the Bank of Italy supervisory powers with respect to payments and settlement systems.

The EU council introduced a regulation on December 17th 2014, to cap interchange fees for both domestic and international card-based payments. According to the new regulations, a cap of 0.2% of the annual weighted average transaction value is applicable on domestic debit card transactions. A cap of 0.2% of the transaction value is applicable on international debit card transactions; a cap of 0.3% of the transaction value can be applied to credit card transactions. The new regulation aims to promote innovation, improve customer service and ensure flexibility by introducing organizational separation between card schemes and processing entities to reduce bundling of services. It provides consumers the option to choose the most efficient payment solution with a higher number of brands in the payment card market.

Italy ranks fifth in Europe in terms of online retail sales, behind the UK, Germany, France and Spain. The growth of e-commerce in Italy was facilitated by the development of internet and mobile payment services. Consumers in Italy frequently use payment cards to pay for online purchases. While the share of payment cards and cash on delivery decreased, digital wallet, credit transfer, direct debit and mobile wallet and carrier billing managed to increase their share during 2012–2014, as consumers increasingly use phones to make payments.

Scope

• The competitive landscape of Italy's cards and payments industry

• Analyses of the key economic, infrastructural and business drivers affecting the Italian cards and payments industry

• Detailed insights into payment instruments, including: check payments, credit transfers, direct debits, payment cards and cash transactions

• An overview of Italy’s key alternative payment instruments

• Current values for Italy’s cards and payments industry for 2014, and forecast figures to 2019.

• Profiles of major banks in Italy's cards and payments industry

• E-commerce market analysis and detail of online payment types in the Italian market

• A detailed analysis of strategies adopted by banks and other institutions to market debit, credit and charge cards

Key Highlights

What regulation has the Italian government introduced to limit the use of cash at retail outlets? What is mandatory for wholesalers and retailers as a result? How is this anticipated to drive payment card transaction values and volumes over the forecast period (2015 to 2019)?

Which merchants have already introduced m-POS systems in the Italian cards and payments market? Which major payment networks are the systems compatible with?

What platform has MasterCard launched in the Italian digital payments arena? What does it enable customers to do? What is required of consumers if they wish to interact with this platform? Which three participating Italian banks are playing a key role in the operation of this platform?

Reasons to buy

• Make better informed business decisions in each category of Italy's cards and payments industry utilizing GlobalData’s top-level historic and forecast market data

• Identify the key market trends and growth opportunities in Italy's cards and payments industry and evaluate those that may offer you the best opportunity to grow your market share

• Assess the key regulations governing Italy’s cards and payments industry and address those which may impact on your business

Companies mentioned

Poste Italiane

UniCredit

Intesa Sanpaolo

BNL

CartaSi

Bancomat Cards

Visa

MasterCard

American Express

Table of Contents

1 Definitions and Methodology

1.1 Definitions

1.2 Methodology

2 Key Facts and Events

3 Executive Summary

4 Payment Instruments

4.1 Current Payment Environment

5 E-Commerce

5.1 E-Commerce Market Analysis

6 Alternative Payments

6.1 Alternative Payment Instruments

6.1.1 MySi

6.1.2 e-Postepay

6.1.3 Paysafecard

6.1.4 MasterPass

6.1.5 Ukash

6.1.6 PayPal

7 Regulations in the Cards and Payments Industry

7.1 Regulatory Framework

7.1.1 Interchange fee regulations

7.1.2 SEPA cards framework

7.2 Anti-money laundering framework

7.3 Foreign direct investment (FDI) regulations

8 Analysis of Cards and Payments Industry Drivers

8.1 Demographic Drivers

8.2 Economic Drivers

8.3 Infrastructure Drivers

8.4 Business Drivers

9 Market Segmentation and New Product Launches

9.1 Market Segmentation and Targeting

9.1.1 Consumer cards

9.1.2 Commercial cards

9.2 New Product Launches

10 Payment Cards

10.1 Payment Cards Analysis

10.1.1 Volume and value of payment card transactions by type

10.1.2 Personal vs commercial cards

11 Debit Cards

11.1 Debit Card Market Analysis

11.1.1 Debit card transaction volumes and values by channel

11.1.2 Debit card scheme and issuer shares in terms of transaction value

11.1.3 Debit cards comparison

12 Credit Cards

12.1 Credit Card Market Analysis

12.1.1 Credit card transaction volumes and values by channel

12.1.2 Credit card scheme and issuer shares in terms of transaction value

12.1.3 Credit cards comparison

13 Charge Cards

13.1 Charge Card Market Analysis

13.1.1 Charge card transaction volumes and values by channel

13.1.2 Charge card scheme shares in terms of transaction value

14 Commercial Cards

14.1 Commercial Card Market Analysis

14.1.1 Commercial cards comparison

15 Card Fraud Statistics

15.1 Card Fraud Analysis

16 Card Issuers

16.1 Poste Italiane

16.2 UniCredit

16.3 Intesa Sanpaolo

16.4 Banca Nazionale del Lavoro

16.5 CartaSi

17 Prepaid Cards

17.1 Prepaid Card Market Analysis

17.1.1 Prepaid cards comparison

18 Merchant Acquiring

18.1 Merchant Acquiring Market Analysis

19 Appendix

19.1 Tables

19.2 Contact GlobalData

19.3 About GlobalData

19.4 GlobalData’s Services

19.5 Disclaimer

List of Tables

Table 1: Key Definitions

Table 2: Annual Average Exchange Rate

Table 3: Italy – Key Facts, 2014

Table 4: Regional Benchmarking of Italian Payment Cards, 2014

Table 5: Market Entry Strategies of Foreign Banks

Table 6: Italy – Cards for High-Income Consumers, 2015

Table 7: Italy – Cards for Travelers, 2015

Table 8: Italy – Cards for Students and Young Population, 2015

Table 9: Italy – Cards for Shoppers, 2015

Table 10: Italy – Commercial Cards, 2015

Table 11: Italy – New Product Launches

Table 12: Italy – Debit Cards Comparison and Key Features, 2015

Table 13: Italy – Gold Credit Cards Comparison and Key Features, 2015

Table 14: Italy – Premium Credit Cards Comparison and Key Features, 2015

Table 15: Italy – Commercial Cards Comparison and Key Features, 2015

Table 16: Italy – Prepaid Cards Comparison and Key Features, 2015

Table 17: Italy – Payment Instrument Transaction Values (EUR Billion), 2010–2014

Table 18: Italy – Payment Instrument Transaction Values (US$ Billion), 2010–2014

Table 19: Italy – Payment Instrument Transaction Volumes (Billion), 2010–2014

Table 20: Italy – Number of Payment Cards in Circulation by Type (Million), 2010–2019

Table 21: Italy – Volume of Payment Card Transactions by Type (Billion), 2010–2019

Table 22: Italy – Value of Payment Card Transactions by Type (EUR Billion), 2010–2019

Table 23: Italy – Value of Payment Card Transactions by Type (US$ Billion), 2010–2019

Table 24: Italy – Personal and Commercial Card Transaction Volumes ( Million), 2010–2019

Table 25: Italy – Personal and Commercial Card Transaction Values (EUR Billion), 2010–2019

Table 26: Italy – Personal and Commercial Card Transaction Values (US$ Billion), 2010–2019

Table 27: Italy – Number of Debit Cards in Circulation (Million), 2010–2019

Table 28: Italy – Debit Card Transaction Volumes and Frequency by Channel, 2010–2019

Table 29: Italy – Debit Card Total and Average Transaction Values by Channel, 2010–2019

Table 30: Italy – Debit Card Total and Average Transaction Values by Channel, 2010–2019

Table 31: Italy – Number of Debit Cards in Circulation by Scheme (Million), 2010–2014

Table 32: Italy – Debit Card Transaction Values by Scheme (EUR Billion), 2010–2014

Table 33: Italy – Debit Card Transaction Values by Scheme (US$ Billion), 2010–2014

Table 34: Italy – Debit Card Transaction Values by Issuer (EUR Billion), 2010–2014

Table 35: Italy – Debit Card Transaction Values by Issuer (US$ Billion), 2010–2014

Table 36: Italy – Number of Credit Cards in Circulation (Million), 2010–2019

Table 37: Italy – Credit Card Transaction Volumes and Frequency by Channel, 2010–2019

Table 38: Italy – Credit Card Total and Average Transaction Values by Channel, 2010–2019

Table 39: Italy – Credit Card Total and Average Transaction Values by Channel, 2010–2019

Table 40: Italy – Number of Credit Cards in Circulation by Scheme (Million), 2010–2014

Table 41: Italy – Credit Card Transaction Values by Scheme (EUR Billion), 2010–2014

Table 42: Italy – Credit Card Transaction Values by Scheme (US$ Billion), 2010–2014

Table 43: Italy – Credit Card Transaction Values by Issuer (EUR Billion), 2010–2014

Table 44: Italy – Credit Card Transaction Values by Issuer (US$ Billion), 2010–2014

Table 45: Italy – Number of Charge Cards in Circulation (Million), 2010–2019

Table 46: Italy – Charge Card Transaction Volumes and Frequency by Channel, 2010–2019

Table 47: Italy – Charge Card Total and Average Transaction Values by Channel, 2010–2019

Table 48: Italy – Charge Card Total and Average Transaction Values by Channel, 2010–2019

Table 49: Italy – Number of Charge Cards in Circulation by Scheme (Million), 2010–2014

Table 50: Italy – Charge Card Transaction Values by Scheme (EUR Million), 2010–2014

Table 51: Italy – Charge Card Transaction Values by Scheme (US$ Million), 2010–2014

Table 52: Italy – Number of Commercial Cards in Circulation (Million), 2010–2019

Table 53: Italy – Commercial Cards Transaction Value (EUR Billion), 2010–2019

Table 54: Italy – Commercial Card Transaction Values (US$ Billion), 2010–2019

Table 55: Italy – Card Fraud (EUR Million), 2010–2014

Table 56: Italy – Card Fraud (US$ Million), 2010–2014

Table 57: Italy – Number of Prepaid Cards in Circulation (Million), 2010–2019

Table 58: Italy – Prepaid Card Transaction Values (EUR Billion), 2010–2019

Table 59: Italy – Prepaid Card Transaction Values (US$ Billion), 2010–2019

Table 60: Italy – Merchant Acquirers’ Transaction Volume by Card Type (Billion), 2010–2019

Table 61: Italy – Merchant Acquirers’ Total Transaction Value (EUR Billion), 2010–2019

Table 62: Italy – Merchant Acquirers’ Total Transaction Value (US$ Billion), 2010–2019

Table 63: Italy – Merchant Acquirers’ Transaction Value (EUR Billion), 2010–2014

List of Figures

Figure 1: Italy – Payment Instrument Shares by Transaction Value (%), 2010 and 2014

Figure 2: Italy – Payment Instrument Shares by Transaction Volume (%), 2010 and 2014

Figure 3: Italy – E-Commerce Value (US$ Billion) and Payment Types (%)

Figure 4: Italy – Total Population and Structure, 2014

Figure 5: Italy – Economic Indicators, 2010–2019

Figure 6: Italy – Number of ATMs, POS Terminals and Commercial Bank Branches

Figure 7: Italy – Retail Sales and Household Final Consumption Expenditure Per Capita, 2010–2014

Figure 8: Italy – Cards and Payments Industry Segmentation by Card Type, 2015

Figure 9: Italy – Growth in Payment Cards Transaction Value and Number of Cards in Circulation by Type, 2010–2019

Figure 10: Italy – Volume and Value of Payment Card Transactions by Type (%), 2010–2019

Figure 11: Italy – Personal and Commercial Cards, Transaction Volume and Value (%), 2010–2019

Figure 12: Italy – Growth in Debit Cards Transaction Value and Number of Debit Cards in Circulation, 2010–2019

Figure 13: Italy – Pay Now, Average Interchange Fees: Intra-Network Transactions (%), 2010–2014

Figure 14: Italy – Pay Now, Average Merchant Service Charge: Domestic Transactions (%),

Figure 15: Italy – Debit Card Transaction Volumes and Values by Channel, 2010–2019

Figure 16: Italy – Debit Card Scheme and Issuer Shares in Terms of Transaction Value (%), 2014

Figure 17: Italy – Growth in Credit Card Transaction Values and Number of Credit Cards in Circulation, 2010–2019

Figure 18: Italy – Pay Later, Average Interchange Fees: Intra-Network Transactions (%),

Figure 19: Italy – Pay Later, Average Merchant Service Charge: Domestic Transactions (%),

Figure 20: Italy – Credit Card Transaction Volumes and Values by Channel, 2010–2019

Figure 21: Italy – Credit Card Scheme and Issuer Shares in Terms of Transaction Value (%), 2014

Figure 22: Italy – Growth in Charge Cards Transaction Value and Number of Credit Cards in Circulation, 2010–2019

Figure 23: Italy – Charge Card Transaction Volumes and Values by Channel, 2010–2019

Figure 24: Italy – Charge Card Scheme Shares in Terms of Transaction Value (%), 2014

Figure 25: Italy – Number of Commercial Cards in Circulation and Transaction Value, 2010–2019

Figure 26: Italy – Shares of Various Types of Card Fraud in Terms of Transaction Value (%), 2010 and 2014

Figure 27: Italy – Number of Prepaid Cards in Circulation and Transaction Value, 2010–2019

Figure 28: Italy – Merchant Acquiring Transaction Volume and Value, 2010–2019

Figure 29: Italy – Merchant Acquirers’ Market Shares in Terms of Transaction Volume and Value (%), 2014

Figure 30: Italy – Number of Retail Outlets and Total Merchant Accounts (Thousand), 2010–2019

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