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Easier Said Than Done: Why Italians Pay in Cash While Preferring Cashless

Author

Listed:
  • Alberto Di Iorio

    (Bank of Italy, Directorate General for Currency Circulation and Retail Payments)

  • Giorgia Rocco

    (Bank of Italy, Directorate General for Currency Circulation and Retail Payments)

Abstract

In this study we use data from the 2019 Study on the Payment Attitudes of Consumers in the Euro Area (SPACE) to analyze the main drivers of payment choices at the point of sale (POS) in Italy. We find that transaction-related features are the most important factors affecting the payment choice at the POS, while individual consumer preferences play a minor role. We also document that consumers often pay in cash, even though they would prefer to use a different payment instrument, due to a lack of acceptance of alternative instruments by merchants, especially for low-value transactions. Finally, consumers’ digital skills are found to be a relevant factor in payment habits since they affect preferences and reduce the likelihood of cash usage, especially for those groups that tend to use it more, such as women and residents in the South.

Suggested Citation

  • Alberto Di Iorio & Giorgia Rocco, 2025. "Easier Said Than Done: Why Italians Pay in Cash While Preferring Cashless," International Journal of Central Banking, International Journal of Central Banking, vol. 21(3), pages 155-184, July.
    • Handle: RePEc:ijc:ijcjou:y:2025:q:3:a:4
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    References listed on IDEAS

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    1. Carbó-Valverde, Santiago & Liñares-Zegarra, José M., 2011. "How effective are rewards programs in promoting payment card usage? Empirical evidence," Journal of Banking & Finance, Elsevier, vol. 35(12), pages 3275-3291.
    2. Arango-Arango, Carlos A. & Bouhdaoui, Yassine & Bounie, David & Eschelbach, Martina & Hernandez, Lola, 2018. "Cash remains top-of-wallet! International evidence from payment diaries," Economic Modelling, Elsevier, vol. 69(C), pages 38-48.
    3. Carlos A. Arango & Dylan Hogg & Alyssa Lee, 2015. "Why Is Cash (Still) So Entrenched? Insights From Canadian Shopping Diaries," Contemporary Economic Policy, Western Economic Association International, vol. 33(1), pages 141-158, January.
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