Mandatory or not the use of the Pos, “the growth of digital payments is an unstoppable process”. Umberto Zola, head of Sumup’s growth strategy, has few doubts about the provision of the Budget law which eliminates the obligation of the POS for transactions under 60 euros. “It goes against the trend of recent years”, and denies that digital payments are an extra cost for citizens and merchants. Of course, Sumup’s Growth Marketing Lead confirms that Italy is a “two-speed” country on cashless, with pockets of resistance and sectors that have instead seen a rapid acceleration in the use of POS, such as taxi drivers. But he is certain of one fact: “Digital transactions, even for smaller amounts, are increasingly popular”.
How do you evaluate the rule that cancels the obligation of the Pos under 60 euros?
“The proposed rule goes against the trend of recent years, in which both institutions, citizens and merchants have shown a strong push towards digital payments. Like SumUp, we believe that the growth of the cashless society is an unstoppable process”.
Explain to us.
“This is demonstrated by the data of our Cashless Payment Observatory, which shows not only the increase in the average number of transactions made by card, but also the decrease in the average receipt, demonstrating that more and more Italians are used to paying by card even small amounts.
One of the reasons why we wanted to remove the obligation is to reduce costs for merchants.
“Digital payment instruments, once perceived as an expense, actually reduce the cost of cash, which is not always aware of, but which is significant. Among these, the cost of the risk of having large amounts of cash in the shop, receiving counterfeit banknotes and management costs, including the logistical cost of depositing at the counters. Closing bank branches doesn’t always ensure that neighborhood shops and restaurants can access them nearby. Furthermore, it should also be considered that proposing digital forms of payment helps merchants not to lose a now substantial portion of customers who prefer to pay by card even for small amounts and are no longer used to having cash”.
Could this regulation be an obstacle to your business in Italy?
“As demonstrated by the data from our Observatory, the transition process towards the cashless economy is irreversible. The transition from cash to digital is a trend that is gradually consolidating, driven by new consumption habits that have accelerated during the pandemic. Regardless of the standard, the market points towards a direction in which the consumer has the possibility to choose the method by which he prefers to pay and both customers and the market itself are moving more and more towards digital payments: there are more and more people who prefer to pay by card even for small amounts, no longer used to having cash. For this reason, we do not expect a regulatory change to halt this trend.”
Speaking of legislation, how has the introduction of the Pos obligation changed payments in Italy?
“In recent years, Italy has seen an important acceleration in cashless payments, partly derived from the health emergency, partly from the institutional push. Incentives aimed at merchants such as the tax credit and those aimed at consumers such as the State Cashback and the receipt lottery have consolidated the habit of digital payments. We recently published the SumUp 2022 Cashless Payment Observatory to study the evolution of the digital payments trend in Italy even in the post-pandemic. According to what emerged from the data, the growth of digital payments will continue in 2022: at national level, the average number of transactions per merchant has in fact increased by 17% compared to 2021″.
Are there any exceptions or sectors that have done better than others?
“We could speak of a two-speed Italy: some sectors, such as that of taxi drivers, recorded high growth compared to last year, showing how in some contexts the habit of using the card still needs to mature; in other cases, however, the less evident growth percentages tell of an adjustment, symptomatic of the fact that paying cashless has already become a routine. Even the average cashless receipt becomes “smaller” year after year”.
That is to say?
“We observe that in 2022 it stands at 40.8 euros, showing a constant decline starting from 2019 (-30%), when we were talking about 57.9 euros; subsequently, it reached 51.3 euros in 2020 and then 43.4 euros in 2021. A figure that continues to demonstrate how over time digital transactions are becoming increasingly popular – and also accepted by merchants for ever smaller numbers.
Apart from that, exhibitors today are also worried about the surge in inflation. Your observatory has tried to understand how they are preparing for the coming months.
“The data from the SumUp Small Business Observatory show a natural concern of small businesses for the increase in the cost of supplies and energy, as an element with the greatest negative impact on their business. Reducing energy costs is the main solution identified by 39% of exhibitors to counter the crisis. Some of them consider drastic consequences, such as closing their business, but the majority have a strategic vision to overcome the crisis. Optimism, in fact, is reserved for the role of technology in small businesses: more than half of the interviewees believe that this can be an excellent engine to counter price increases and remain competitive”.