Published on 08/04/2024

Payment revolution in Italy | 5 key trends to follow

In Italy, the payments industry is in the midst of a transformation, driven by innovations that have redefined everyday transactions. Italian payment habits are changing, propelled by the emergence of new trends. From the growing popularity of Buy Now Pay Later solutions to the adoption of contactless payment and artificial intelligence, this movement is shaping a future where the role of payment solutions is expanding. FLOA has uncovered five trends that are shaping the payments sector in Italy and that are guaranteed to change the way Italians manage their finances and make their daily purchases.

Trend 1 | BNPL

Buy Now Pay Later (BNPL) is the innovative payment method that allows consumers to immediately acquire goods or services, with the option to pay in 3 or 4 instalments⁽⁷⁾, often at zero fees. In Europe, 43%⁽¹⁾ of Europeans have already used BNPL, reflecting its growing popularity. In Italy, adoption of BNPL is also increasing, with 22%⁽¹⁾ more users between 2021 and 2022. Almost a third of Italians (31%)⁽¹⁾ now opt for this split payment solution. This is the top trend shaking up the market.

This method of payment has multiple benefits for consumers.

For merchants, offering a split payment solution such as BNPL (through a partnership with FLOA, for example) is a significant competitive advantage. By simplifying the buying experience, this flexible payment method helps to increase the average basket and the conversion rate. It also helps bolster customer loyalty by improving the overall shopping experience.

Trend 2 | Trade In

Second trend: Trade In This new payment method is directly linked to the act of recycling a used good. The concept is simple: when a consumer wants to buy a new product, they can exchange their old model for a discount on the purchase price.

This concept, originally created to encourage the reuse and recycling of smartphones, has a significant environmental impact. Taking back and placing used devices on the market reduces the manufacturing of new terminals and thus limits electronic waste.

For the consumer, in addition to the eco-friendly aspect, Trade In offers a financial advantage. By valuing their old property, the consumer benefits from a substantial discount on the purchase price of the new product. On the merchant side, offering this trade-in solution provides a real competitive edge. It allows them to stand out from the competition by demonstrating an eco-responsible commitment, while also fostering loyalty among customers attracted by the savings.

Trend 3 | Contactless payment with SoftPOS

Another trend that is gaining ground is contactless payment using SoftPOS (Software Point of Sale) technology. It makes it easy to turn a smartphone, tablet or even a computer into a full-fledged payment terminal. In practice, SoftPOS uses the NFC⁽²⁾ (Near Field Communication) sensors built into mobile devices to accept contactless payments simply by tapping a bank card or other compatible device.

This innovation paves the way for the multiplication of establishments accepting contactless payment, particularly among small mobile businesses or home service providers. The smartphone becomes a genuine mobile payment terminal.

For small merchants and individual entrepreneurs, SoftPOS is a major asset in terms of flexibility and accessibility to contactless payments. With this technology, business are no longer required to invest in an expensive physical payment terminal.

Trend 4 | SNBL

The Save Now Buy Later (SNBL) concept aims to encourage consumers to save for a specific purchase. This system relies on dedicated platforms and applications that offer customers the opportunity to automatically save money for a given purchase goal. Once the amount has been reached, the consumer can make their purchase from the trading partners of the SNBL service, often with exclusive advantages and incentives.

For consumers, the main added value of SNBL lies in facilitating savings by making it fun and motivating through a concrete objective. This system prevents impulse spending.

Trend 5 | Artificial Intelligence

Last but not least, Artificial Intelligence (AI) has had a huge impact on the entire customer journey, especially in the payments sector. Advanced algorithms, machine learning and predictive analytics are revolutionizing everything. To remain competitive, payment players will need to integrate AI into their solutions and customer journeys. The stakes are high: increase trust and security, improve the user experience, reduce operational costs by limiting credit card fraud, and more.

One of the major challenges will be to anticipate and adapt quickly to the emerging needs of increasingly demanding consumers in terms of simplicity, personalization and responsiveness during the checkout process. FLOA has already understood the assignment, having transformed its customer relationship over the past five years by combining AI with humans.

Don’t miss the opportunity to offer your customers more flexibility. Contact FLOA now to integrate Buy Now, Pay Later into your commercial offer.

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