Bank of Italy has published the report The social cost of payment tools in Italy, which analyzes the evolution of costs linked to different payment methods in the country. This third investigation, based on data from 2022, highlights a significant reduction in the overall social cost, which stands at 0,61% of GDP, approximately 12 billion €.
The evolution of costs and the role of digitalisation
Compared to previous investigations of 2016 and of 2009, the social cost decreased respectively by 0,1 and 0,14 percentage points of GDP. This decline is primarily attributable to the growth of digital transactions, which generated economies of scale and reduced the average cost per operation from 1,01 euro in 2016 a 0,62 euro in 2022. Digitalization has had a significant impact: today beyond 93% of operations takes place via electronic channels, come home banking e mobile banking, compared to 83% of 2016 and 74% of 2009.
The data in the report shows how digitalisation has contributed to reducing costs and improving the efficiency of the payments system in Italy.
Comparison between payment instruments
The survey shows that the most cost-efficient payment instruments are:
– Direct debit: 0,19 euros per operation.
– Payment cards: 0,46 euros per operation.
– transfers: 0,70 euros on average, with a difference between traditional online transfers (0,45 €) and instant (0,66 €).
Unlike, paper instruments are more expensive:
– Cash withdrawals and deposits: 2,44 euros per operation.
– Checks: 5,28 euros per operation, with a reduction in use that led to diseconomies of scale.
Impacts on businesses and merchants
Businesses and merchants have also benefited from the reduction in payment acceptance costs, particularly for digital instruments compared to cash. This trend reflects technological innovation and the progressive replacement of physical operations with digital ones, contributing to greater efficiency of the payment system in Italy.
The Bankitalia report highlights how digitalisation and innovation have contributed to reducing the social cost of payment instruments, improving the efficiency of the system and encouraging a transition towards more sustainable and convenient methods. With the evolution of European regulations, such as the revision of the PSD2 Directive and the Instant Credit Transfer Regulation, the payments sector is destined to undergo further transformations in the coming years.
Alex Gaetani