Country _ Name
Italy
SectionTitle
Payment services
Body
FinTechs belonging to this category offer alternative payment services which are supposed to provide a faster and cheaper way for national, European, and international payments for private and business customers by using new technologies.

For example, payment service providers hereby offer solutions to easily integrate several payment services in online shops.

Some FinTechs furthermore provide real cash register systems and online-reservation solutions for restaurants and shops providing their own payment services or making use of the payment services of FinTechs described above.

Introduction

Attitude of the country towards modern payment services

In Italy, payment services are experiencing a constant growth in recent times, almost challenging cash as the most common payment means. The payment services industry continued to gain momentum especially following the lock-downs periods, and by being closer to Gen Y and Z paperless needs. Also, a set of political measures aimed at incentivizing the use of electronic and card payments were recently enacted by the Italian government.

Payment services are subject to prior authorisation and regulated by the Bank of Italy (Banca d’Italia).


Legal affairs

Obligations and requirements to provide payment services or ancillary services described above

Payment services can be provided by payment institutions authorized by the Bank of Italy. The authorization is subject to the conditions listed under Section 114-novies of the Italian Consolidated Banking Law (Legislative Decree no. 385 of September, 1st 1993 as amended – Testo Unico Bancario – “TUB”) as specified by the regulatory provisions on payment institutions and electronic money institutions issued by the Bank of Italy. Among others, it is required that payment institutions are incorporated either as joint stock company (società per azioni), limited partnership by shares (società in accomandita per azioni), limited liability company (società a responsabilità limitata) or cooperative (società cooperativa) and that they have their registered offices in the Italian territory. Moreover, payment institutions are required to have a minimum initial capital equal to:

  • EUR20,000 when the payment institution provides only money remittance services;
  • EUR50,000 when the payment institution provides only services of execution of payment transactions where the consent of the payer to execute a payment transaction is given by means of any telecommunication, digital or IT device and the payment is made to the telecommunication, IT system or network operator, acting only as an intermediary between the payment service user and the supplier of the goods and services;
  • EUR125,000 in case the payment institution provides one or more of the other payment services.
Payment institutions may provide a number of ancillary services without the need to obtain an ad hoc authorization, including: granting of credits related to the provided payment services, provision of related or operative services and management of payment systems. Entities normally performing other kind of business can provide payment services only if authorized by the Bank of Italy. In this case, they shall comply with some specific requirements, including the maintenance of a dedicated asset in relation to the provision of payment services and ancillary services.

Additional comments regarding the legal situation for payment services or what FinTech’s must be aware of in this business area

Payment institutions established in another EU Member State can provide payment services in Italy under the European passport regime by establishing a branch or also under the regime of the freedom to provide services in the EU. In this case, the legislation of the home country shall generally apply. In particular, the establishment of a first branch or the provision of services under the regime of the freedom to provide services in the EU must be preceded by a communication to the Bank of Italy submitted by the competent authority of the Member State where the payment institution is established.

The recently enacted rules implementing the EU Directive 2015/2366 on payment services (“PSD2”) and Regulation 751/2015 on interchange fees for card-based payment transactions (“IFR”), brought further innovation into the local legal landscape (see Legislative Decree no. 218 of December, 15th 2017 – “PSD2 Act”).

The PSD2 Act indeed introduced amongst other: rules on open banking, new payment services and relevant providers, and stronger means of customer authentication.

The PSD2 Act also sets out new rules on payment oversight, mainly related to regulatory reporting duties (e.g. sales and telephone firms are required to file with the Bank of Italy certain data on the payments executed)

Along with the Competent Regulatory Authorities, notably the Bank of Italy, a key role in the local market for payment services marketing and distribution is played by the Body for Credit Broker and Financial Agents (Organismo Mediatori Creditizi e Agenti in Attività Finanziarie - “OAM”).

The OAM is a self-governing body ultimately supervised by the Bank of Italy, that sets out specific regulations on the selling of financial services including payment ones and, most recently, also cryptocurrency and e-wallet services. Under the Italian rules transposing the MiCA Regualtion (see infra), any crypto-assets service providers enrolled with the OAM had to file for a new licence by 30 June 2025, in order to be fully entitled to carry out crypto-assets services in Italy. There has however been issued a post-ponement, granting the crypto-assets service provider to keep their OAM registration up to 30 June 2026 (see Decree Law No. 95/2025).

Lately, the ongoing implementation of the MiCA Regulation into the Italian system (see infra) exposes some interplays between payment institutions’ and crypto-assets service providers’ regulatory frameworks notably in the field of e-money issuance (see the Bank of Italy’s Notice dated 30 June 2025).


Economic conditions

Market size for payment services and biggest payment service providers

According to the last Milan Politechnic School of Management Digital Innovation Report, in 2024 digital payment transactions overtook cash-based ones by value for the first time. Specifically, digital payment means accounted for 43% of the overall 2024 transaction value (ca. €481bln), 8.5% more than in the previous year, compared to the 41% represented by cash.  Cards remain the digital payment instrument most frequently used in Italy by both individuals and firms (68.2% of the total non-cash transactions), according to the Bank of Italy Annual Report on 2024.  POS continued their penetration in the Italian market too (more than 3.5mln are in place at the end of 2024).

NEXI is the local biggest payment service provider, ranging from wholesale market infrastructures and payment settlements to consumer services, and it went public in 2021. NEXI’s latest market transactions include the purchasing of the acquiring services branch of the Deutsche Bank Italia operation and the sale of the SIA shareholding. Also, the Milan-based contactless payment firm SatisPay recently became a unicorn, and is  expanding its business model in the EU and into the corporate benefits sector.

Additional comments regarding the economic situation for payment services or what FinTech’s must be aware of in this business area

Local and foreign banks as well as other institutional investors as looking at the local payment services market with growing interest.



Authors

Close

Choose country