According to a new report from the Bank of Italy, the social cost of payments in Italy has fallen to 0,61% of GDP. Costs per transaction are also falling thanks to the growth of digital payments. Cards are advancing, cash is retreating, but checks remain an efficiency problem

The Italian market for payments at retail continues to evolve towards one greater economic efficiency. This is confirmed by a new report from the Bank of Italy, published yesterday, which analyses “The social cost of payment instruments in Italy”. The survey, the third after those of 2012 and 2020, is based on 2022 data and involves a representative sample of banks, service providers, businesses and retailers. The most significant result is the reduction of the “social cost” total of payment instruments, which falls to 0,61% of GDP, equal to 11,6 billion euros: twelve basis points less than 2016 (0,73%) and fourteen compared to 2009 (0,75%).

More operations, less cost per transaction

To tow the cost reduction were the economies of scale obtained with the increase in transactions, especially digital ones. From 2016 to 2022 the overall number of transactions more than doubled (+106%), while the average cost per operation it contracted from 1,01 to 0,62 euros. In 2009 it was still at 1,39 euros. Digitalization has played a central role: today over 93% of transactions take place via telematic channels (home and mobile banking), compared to 83% in 2016 and 74% in 2009.

More efficient cards and direct debits, checks in trouble

In 2023 in Italy the number of transactions with alternative instruments to cash exceeded 13 billion, up 13,2% compared to the same period of the previous year.

Looking at the individual instruments, thedirect debit It is the most efficient method, with a cost of 0,19 euros per transaction, followed by payment cards (0,46 euros) and bank transfers (0,70 euros on average). traditional online transfers are cheaper (0,45 euros) than those instantaneous (0,66 euros), but both cost much less than transfers made at physical branches, which reach 2,11 euros per transaction.

At the opposite extreme are the paper tools: cash withdrawals and deposits cost 2,44 euros each, while checks can reach as much as 5,28 euros per transaction. Their limited diffusion has reduced economies of scale, making the check one of the least sustainable solutions, despite the decline in its use.

Retailers also benefit from the savings

Not only the banks, but also the traders and businesses they record a cost reduction of payment acceptance. The decline is particularly marked for digital instruments, such as direct debits and cards, compared to cash. The reduction in private costs is the direct reflection of technological innovation and the progressive replacement of physical transactions with digital ones, in a system that is rapidly adapting to European standards.

Towards a new regulatory phase

The Bank of Italy’s investigation comes at a crucial moment: it opens a new regulatory phase at European level. Among the main innovations we can highlight the Review of the PSD2 directive, the Instant Credit Transfer Regulation and the proposed Digital Euro Regulation. The aim is to strengthen the competitiveness, security and efficiency of European payment instruments, continuing along the path set out in the European Retail Payments Strategy.