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Italy is one of largest prepaid card markets in Europe. Prepaid cards, along with other financial cards, benefited significantly from the Italian government’s ‘war on cash’ that aims to limit the influence of the shadow economy. Ability to budget spending and increase in ecommerce and m-commerce has resulted in increased demand for prepaid cards in the country. For majority of Italian consumers, the added security and convenience offered by prepaid cards is one of the major deciding factors for its adoption.

Favorable government regulations and utilization of prepaid cards to disburse government benefits is one of major factors driving prepaid card adoption in the country. In 2011, in an effort to curtail tax evasion and curb the informal economy, Italian government put a limit on cash payments of over EUR1000, making it mandatory for Italians to use electronic payment methods for carrying out transactions above the specified limit (from January 1, 2016, the limit to conduct cash transactions has been raised to EUR3000). The government also issued guidelines that made it compulsory for every Italian business or professional, to allow payment by debit, credit, or prepaid cards through PoS (Point of sale) terminals for payments over EUR30. The new regulation led to many Italians adopting prepaid cards over the past five years to adhere to the new regulation.

One of the major concerns of Italian consumers regarding online shopping is fear of data theft of financial information shared online. It has been observed that Italians consider one of the primary benefits of prepaid cards to be security as the card is not linked to a bank account, therefore limiting fraud potential. In order to capitalize on this trend card issuers are promoting their prepaid cards as a safe and secure way to make online transactions. For instance, LeuPay prepaid card is prominently promoted as a safe tool for making online purchases. 

Want to gain deeper understanding of prepaid card dynamics in Italy?

Announcing the ‘Prepaid Cards Market Intelligence’ series – “ Italy Prepaid Cards Business and Investment Opportunities – Market Size and Forecast (2011-2020), Targeting Strategies, Analysis of Business Trends, Consumer Attitude & Behaviour, Retail Spend, Market Risk, Competitive Landscape and Market Innovation”.                   

This report from PayNXT360 provides a strategic analysis of prepaid (pay before) cards, offering a wealth of insights to help companies understand this growing but quickly changing market:

  • Market dynamics: Provides a comprehensive view on size and structure, industry dynamics, market trends, consumer attitude and behaviour, and competitive landscape in prepaid card industry.
  • Open loop and closed loop: Provides market estimates and forecasts to assess opportunities in open loop and closed loop prepaid market segments. Details four essential KPIs – number of cards in circulation, numbers transactions, load value, and value of transactions.
  • Prepaid card categories: Details market opportunities across 11 market segments in prepaid cards for the period 2011-2020 and identifies potential risks, and consumer adoption. Card categories include – Gift Cards, Teen and Campus Cards, General Purpose Reloadable Cards, Remittance Cards, Travel Cards, Business Expense Cards, Payroll Cards, Corporate Incentive Cards, Consumer Incentives, Government Benefit & Other Program Cards, Healthcare & Insurance Cards.
  • Benchmarking and risk index: Benchmarks the prepaid card industry in the country with key global markets along with a risk assessment through PayNXT360’s proprietary Prepaid Cards Industry Risk Index (PCIRI).
  • Consumer attitude and behaviour: Drawing from proprietary survey results, this report identifies and interprets key prepaid KPIs, including spend by age, gender, and income level. In addition, it provides an overview of how consumers are currently using prepaid cards across five key categories – travel, bill payment, retail spend, cash withdrawal, and P2P transfers. It also provides a breakdown by transaction size.
  • Retail spend: Breaks down retail spend across 11 categories to provide detailed insights on consumer behaviour and changing dynamics of prepaid card spend.
  • Gift cards: Drawing from proprietary survey results, this report provides in-depth analysis of opportunities in both open loop and closed loop prepaid gift card categories. Assesses consumer behaviour by type of consumer (retail and corporate), gifting occasion, card type (paper, plastic, digital), and market share by retail categories.
  • Innovation and market strategies: Explores prepaid card strategies, including innovations across categories, competitive positioning, and new product launches.

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