Discovering our Community: the future of digital payments with trends, data and scenarios

In 2024, digital payments in Italy surpassed cash for the first time, reaching a total transaction value of €481 billion — equivalent to 43% of total consumption — marking an 8.5% increase compared to the previous year¹. Italy's advancements in digital payments align with broader European and global trends, where the digital payment market is expected to grow at a Compound Annual Growth Rate (CAGR) of 13.55%, reaching approximately $28.16 trillion by 2032, driven by fintech innovations and increasing consumer demand for seamless transactions².

According to the Innovative Payments Observatory of the Politecnico di Milano, payments made via smartphones and wearable devices saw significant growth. In 2024, innovative payment solutions (from smartphones and wearables) reached a total transaction volume (both online and offline) of €56.7 billion, up 53% from the previous year. The use of wearable devices such as smartwatches, rings, and key fobs is rapidly expanding: in 2024, transactions using these tools reached a value of €2.5 billion, up 57% compared to 2023.
Payments made in physical retail locations via digital tools totaled €385 billion, with a 7% increase over 2023. Of this amount, €43 billion came from transactions made by foreign visitors in Italy, highlighting the importance of digital payment acceptance in an increasingly international context.

Key trends driving the growth of digital payments

The digital payments landscape is undergoing rapid transformation, fueled by innovation, consumer demand, and global digitization. Among the most influential forces shaping this evolution, there are key trends, such as:

Embedded payments

Embedded payments are revolutionizing the user experience by integrating payment capabilities directly into platforms and services. From ride-sharing apps to food delivery services, customers can now complete transactions seamlessly without leaving the application. This frictionless approach enhances customer loyalty, streamlines checkout processes, and opens new monetization avenues for businesses.

B2B and cross-border payments

While much of the digital payments innovation has focused on consumer transactions, the B2B segment is experiencing a transformation of its own. Businesses are adopting digital solutions to streamline invoicing, reduce payment delays, and enhance transparency. Additionally, the rise in global trade and remote work has fueled demand for more efficient and affordable cross-border payments. Fintech companies and blockchain-based platforms are playing a key role in addressing the traditional inefficiencies in this space.

Digital wallets

Digital wallets continue to gain popularity as consumers seek faster, safer, and more convenient ways to pay. With mobile-first generations entering the market and increased smartphone penetration worldwide, digital wallets are becoming standard. These wallets not only support contactless payments but also offer loyalty programs, budgeting tools, and digital identity features.

Real-time and instant payments

The expectation for immediacy has extended into the payments sector. Real-time payment systems allow for instant fund transfers 24/7, significantly improving cash flow for both individuals and businesses. Governments, regulatory bodies and central banks are increasingly backing national real-time payment infrastructures, accelerating global adoption.

In-Store Payments

Despite the rise of e-commerce, in-store digital payments remain a critical focus. While doing grocery shopping or enjoying a meal in a cozy restaurant, consumers now expect contactless options, QR code payments, and NFC-enabled solutions at the point of sale. Retailers are also investing in omnichannel strategies that integrate physical and digital payment experiences, enabling more personalized and data-driven interactions. Innovations like self-checkout kiosks, mobile POS systems and softPOS solutions are redefining the in-store payment journey.

Fintech District community: payments companies

Payment-focused fintechs represent one of the largest segments of Fintech District community, with 52 companies offering innovative solutions across the areas mentioned above. These solutions aim to tackle key challenges and simplify life for both businesses and end consumers. Among them, Klarna, Paysafe and Satispay have achieved unicorn status in recent years, underscoring the growing maturity and global competitiveness of the Italian fintech ecosystem. You can view the full list of our payment companies on our website.

Among them, around one-third have more than 200 employees, six were founded by or are currently led by a female CEO, five are recognized as “Fintech for Good” due to their continued efforts in the ESG space, and more than half are international companies that have expanded into Italy in recent years. More than half of the payments companies in the community are international firms that have expanded into Italy, reflecting a truly international landscape. Countries represented include Sweden (Doconomy), the United Kingdom (Ebury, CurrencyCloud, Soldo, PayXpert), Switzerland (Sonect), France (Market Pay, Greenly, Slimpay), Romania (Pago), Singapore (Triple-A), Denmark (Subaio), and Belgium (Scudi International) - showcasing Italy's growing appeal as a hub for global fintech innovation.

Here are just a few examples from the FD Community of payments companies that have recently closed significant partnerships, launched noteworthy initiatives, or raised funds to support growth and development:

• Tundr, which delivers an all-in-one platform for welfare services and fringe benefits via an innovative app and smart card, recently raised €7.2 million to support its growth. BKN301, a provider of digital payments and Banking-as-a-Service (BaaS) solutions, secured €21.5 million to strengthen its market presence. Meanwhile, Pliant, a corporate card and expense management platform, closed a funding round of over €40 million to expand its product suite and accelerate international expansion.
• HiPay and Viceversa: A recent partnership between HiPay, a global payment service provider processing around €8.5 billion in transactions annually, and Viceversa, a fintech offering revenue-based financing and marketing insights for digital businesses, is a prime example of a win-win collaboration within the Fintech District community. Through this partnership, HiPay’s business clients can now access tailored payment and alternative financing solutions from Viceversa to optimize operations and fuel growth.
• iBanFirst and Agicap: Another notable partnership between fintechs part of our Community involves iBanFirst, a global financial services provider specializing in foreign exchange and international payments, and Agicap, a fintech offering software for real-time cash flow monitoring and forecasting. Together, they support SMEs engaged in international trade by helping to mitigate currency exchange risks and streamline cash flow management.
• Plick and Tinexta: Plick, an Italian fintech offering instant and secure payment solutions, has partnered with Tinexta, a listed company specializing in digital trust and cybersecurity. Through this collaboration, Tinexta has integrated Plick’s digital payment technologies into its suite of services, enabling businesses and public administrations to execute guaranteed payments via email or mobile number – without the need for IBANs. This partnership strengthens the push toward greater digitalization and efficiency in business payments across Italy.
• Satispay: Italy’s homegrown Unicorn
  Satispay, one of the payment companies in our community, is among Italy’s leading fintech players. Founded in 2013, it offers an independent mobile payment network that simplifies daily transactions for both consumers and businesses. Its user-friendly app enables instant peer-to-peer transfers, in-store and online purchases, and bill payments, revolutionizing how Italians manage their money. In 2022, Satispay achieved unicorn status with a valuation exceeding $1 billion and has since continued expanding across Europe, operating in Italy, Luxembourg, France, Germany, and Spain. In November 2024, the company secured an additional €60 million in funding to further accelerate its growth.

As already mentioned, several international payments companies are actively expanding their presence in Italy. Two interesting examples of very active payments fintechs doing business in Italy, and expanding their services fast, include:

• Coverflex: A compensation management solution that integrates all aspects of employee compensation beyond salary. Coverflex is rapidly expanding across Europe and is now one of only 10 authorized “meal voucher” providers operating nationwide in Italy. Its growing client base includes major names such as Esselunga, Deliveroo, and PENNY.
• TerraPay: This UK-based fintech specializes in cross-border payments, aiming to deliver seamless, secure, and real-time global payment experiences. TerraPay’s solutions connect to over 7.5 billion bank accounts and more than 3.7 billion mobile wallets worldwide. In 2023, the company received approval from the Bank of Italy. Since then, it has expanded operations across the country, entered new partnerships (including one with Fabrick in late 2024), and is now using its license to operate throughout all 27 EU member states.

Digital payments: what’s next?

As digital payments continue to evolve, the future points toward even greater integration, speed, and personalization. Innovations like AI-driven financial services, decentralized finance (DeFi), and biometric authentication are set to further reshape the way we pay. The focus will shift from simply digitizing transactions to creating seamless, intelligent, and secure payment ecosystems that support both global commerce and local convenience. One thing is certain: payments are no longer just a backend process; they’re becoming a strategic driver of customer experience and business growth.