Italy Buy Now Pay Later Business and Investment Opportunities Databook - 90+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q1 2026 Update

Key Trends and Drivers

Regulation anchors BNPL within Italy’s consumer-credit framework

• Italy is shifting BNPL from a “light-touch” arrangement to a form of supervised consumer credit. The Bank of Italy has clarified that most BNPL agreements qualify as financing under national banking law, meaning licensing, AML and disclosure rules apply when the lender is not the merchant itself.
• At the EU level, the revised Consumer Credit Directive (CCD II) will apply from November 2026, lowering the exemption thresholds and subjecting short-term, interest-free instalments to more stringent transparency and creditworthiness checks. Italian media have already framed this as a “deep change” for operators like Klarna, Scalapay, and PayPal that offer 60-day plans.
• Strong growth in BNPL volume in Italy from a niche in 2020 to several billion euros by 2024-25 has raised concerns among policymakers about consumers holding multiple small loans that are not always visible to banks. Credit bureaus such as CRIF and financial-sector commentators highlight that Millennials and Gen X remain the core BNPL users, but adoption among older cohorts is rising, and average transaction values are modest (around €150) and easily cumulative, increasing the risk of over-commitment.
• EU legislators want to remove “grey areas” where deferred-payment products sit outside traditional credit law; Italy’s existing banking framework makes it relatively straightforward to bring BNPL under general financing rules. Providers operating in Italy will need to meet full consumer-credit obligations - licensing, pre-contractual disclosure, affordability checks and AML for most BNPL formats once CCD II is implemented in 2026.
• Scale players backed by banks or licensed lenders (e.g., Compass, Deutsche Bank Italy, larger foreign fintechs with Italian authorization) are likely to strengthen their position, while smaller, lightly regulated operators may exit or pivot. Growth is likely to remain positive but more controlled, with fewer “no-questions-asked” products and greater convergence between BNPL and traditional consumer loans.

Payment platforms and banks embed BNPL into Italy’s digital payment rails

• BNPL in Italy is moving from stand-alone checkout buttons to being one of several instalment options integrated into gateways, wallets and European payment schemes. Nexi and Compass have extended their PagoLight BNPL partnership from physical POS to e-commerce, embedding instalment payments directly into Nexi’s XPay gateway for online merchants.
• European initiatives such as Wero (EPI’s digital wallet) and the EuroPA alliance (Bancomat, Bizum, SIBS) are being rolled out with QR, instalment and BNPL capabilities built into instant payment flows; Italian merchants using Wero via Nexi are expected to access these features as they are activated.
• PSPs like Adyen integrate local BNPL players such as Scalapay into their platforms, giving Italian and international merchants a single technical connection to multiple payment methods. Italy’s e-commerce and mobile payment usage is rising quickly: Nexi reported a 61% increase in smartphone and wearable spending in 2024, underscoring the shift in transaction volume to digital channels.
• Merchants increasingly depend on PSPs and acquirers to manage complex payment stacks; integrating BNPL inside existing gateways (XPay, Adyen, Stripe, etc.) is cheaper and operationally simpler than multiple direct integrations.
• European policymakers and schemes want more “sovereign” payment infrastructure; embedding BNPL into Wero and EuroPA fits this push towards pan-European, instant, account-to-account solutions. BNPL will increasingly appear as one option within unified instalment menus offered by PSPs and banks, rather than as isolated fintech services. This will shift the competitive focus to distribution partnerships and gateway routing priorities.
• Bank-backed BNPL (PagoLight, bank card instalments) is likely to gain share at merchants that already rely on Nexi or other major acquirers, while independent BNPL providers will prioritize strategic integrations and cross-border coverage through aggregators like PPRO. As instant-payment wallets mature, instalment features tied to current accounts could compete more directly with traditional BNPL, especially for recurring or higher-value spend.

Local champions extend BNPL into higher-ticket and service-oriented sectors

• Italian-rooted fintech Scalapay has become a central BNPL player in fashion, travel and hospitality, and is now moving into longer-tenor credit and larger ticket sizes. Partnerships with merchants via Adyen’s platform show Scalapay embedded at brands such as Veralab, Douglas, Twinset, Alpitour and Best Western, covering cosmetics, fashion and travel.
• A 2024 partnership with Deutsche Bank Italy allows Scalapay to distribute the bank’s consumer credit products via its platform, extending instalment plans to 36 months and amounts up to €15,000. Scalapay’s 2025 collaboration with Lendismart strengthens in-store coverage across Southern Europe, with Italy as a core market.
• Italy’s strong base of mid-market fashion, tourism, and lifestyle merchants creates demand for short-term instalment plans for both domestic and incoming tourists to spend. Merchants in sectors like travel packages, electronics, and furniture need financing options beyond “pay in 3.” Partnerships with banks (Deutsche Bank, BNP Paribas, and others) give BNPL platforms access to balance sheets and risk-management capabilities suitable for larger loans.
• Platforms like PPRO are positioning Scalapay as one of the preferred local BNPL methods in Italy within a curated portfolio for PSPs, reinforcing its role as the Southern European option in cross-border checkouts. Italy can expect a clearer segmentation between short-term, small-ticket BNPL (often embedded in wallets and gateways) and longer-tenor instalments for higher-value purchases offered through arrangements like Scalapay-Deutsche Bank.
• Local champions will likely deepen specialization in verticals where Italian merchants are strong in fashion, leisure, travel, and home improvement, while relying on bank partners for risk sharing and funding. This may encourage further alliances or transactions between BNPL platforms and banks or consumer-finance firms, consolidating the market around a small number of multi-product, multi-sector providers.

Credit-risk and consumer-protection concerns reshape underwriting and product design

• Supervisors, credit bureaus and industry commentators are increasingly focused on how BNPL affects household indebtedness and credit visibility. Italian and European commentary stresses that BNPL’s simplicity can lead users, especially younger ones, to accumulate several concurrent plans without fully tracking their total obligations.
• Analysis cited by Lamiafinanza and CRIF indicates that Millennials and Gen X remain the main BNPL users in Italy, but usage among Baby Boomers is growing; most contracts remain under €300, yet the number of contracts per person can be high.
• The new CCD II framework explicitly aims to ensure stronger affordability checks and more consistent information for consumers across all short-term credit, including BNPL. Rapid BNPL growth in Italy (with transaction volumes increasing sharply between 2020 and 2024) has coincided with higher living costs, making short-term instalments attractive for everyday purchases as well as occasional big-ticket buys.
• Cases in which BNPL use complicates access to other credit (e.g., mortgages) in other countries have raised concerns among Italian lenders about “hidden leverage” outside traditional credit files. Policymakers see BNPL as an opportunity to modernize consumer credit but stress the need for standardized solvency assessments and early-warning mechanisms when instalments become hard to manage.
• BNPL providers in Italy are likely to increase their use of data sources such as credit bureau files and bank account information to assess affordability before approving instalment plans, especially for amounts beyond very small amounts. Reporting of BNPL exposure to credit bureaus may become more systematic, making BNPL behaviour more visible in mortgage and loan underwriting and potentially reducing approval rates for consumers who overuse instalments.
• Product design is expected to shift further towards hybrid models, some short, interest-free plans, plus longer, clearly priced instalment loans under stricter disclosure and suitability standards, narrowing the gap between BNPL and regulated consumer finance.

Competitive Landscape

Current State of the Market

• BNPL in Italy is characterized by competition between domestic providers, European fintechs, and bank-linked instalment solutions integrated through payment gateways. Scalapay remains a central BNPL method across online fashion, travel and lifestyle retail, while PayPal Pay in 3 and Klarna offer broad ecommerce coverage without deep localization.
• Banks and acquirers are expanding their presence: Nexi and Compass have extended the PagoLight BNPL solution across physical and online merchants through XPay gateway integration. Regulatory developments linked to the Consumer Credit Directive II and the Bank of Italy's treatment of short-term credit are driving shifts toward more supervised, bank-aligned models.

Key Players and New Entrants

• Key players include Scalapay, PagoLight (Compass-Nexi), Klarna, PayPal Pay in 3 and bank instalment solutions from Deutsche Bank Italy and major card issuers. Scalapay remains differentiated through strong merchant penetration and vertical-focus partnerships.
• Banks are emerging as competitive entrants through direct-to-merchant integrations and card-linked instalments. No major new standalone BNPL fintech has entered Italy in the past year; competitive shifts largely come from banks and PSPs embedding instalment functions into existing checkout infrastructure.

Recent Launches, Mergers, and Acquisitions

• Scalapay and Deutsche Bank Italy launched a partnership in 2024, enabling long-term financing up to €15,000 with tenors up to 36 months, expanding BNPL into higher-value categories. Scalapay also partnered with Lendismart in 2025 to broaden in-store coverage across Southern Europe.
• Nexi and Compass expanded PagoLight to ecommerce via XPay in 2024, enabling more merchants to offer instalments with minimal integration. PSPs such as Adyen strengthened Italian BNPL routing by embedding Scalapay for brands in fashion, beauty and travel.

Report Scope

Italy Retail Industry & Ecommerce Market Size and Forecast

• Retail Industry - Spend Value Trend Analysis
• Buy Now Pay Later Share of Retail Industry
• Ecommerce - Spend Value Trend Analysis
• Buy Now Pay Later Share of Ecommerce

Italy Buy Now Pay Later Market Size and Industry Attractiveness

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis
• Market Share Analysis by Key Players

Italy Buy Now Pay Later Revenue Analysis

• Buy Now Pay Later Revenues
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Revenue by Merchant Commission
• Buy Now Pay Later Revenue by Missed Payment Fee Revenue
• Buy Now Pay Later Revenue by Pay Now & Other Income

Italy Buy Now Pay Later Operational KPIs

• Buy Now Pay Later Active Consumer Base
• Buy Now Pay Later Bad Debt

Italy Buy Now Pay Later Spend Analysis by Business Model

• Two-Party Business Model
• Third-Party Business Model

Italy Buy Now Pay Later Spend Analysis by Purpose

• Convenience
• Credit

Italy Buy Now Pay Later Spend Analysis by Merchant Ecosystem

• Open Loop System
• Closed Loop System

Italy Buy Now Pay Later Spend Analysis by Distribution Model

• Standalone
• Banks & Payment Service Providers
• Marketplaces

Italy Buy Now Pay Later Spend Analysis by Channel

• Online Channel
• POS Channel

Italy Buy Now Pay Later By End-Use Sector: Market Size and Forecast

• Retail Shopping
• Home Improvement
• Travel
• Media and Entertainment
• Services
• Automotive
• Health Care and Wellness
• Others

Italy Buy Now Pay Later By Retail Product Category: Market Size and Forecast

• Apparel, Footwear & Accessories
• Consumer Electronics
• Toys, Kids, and Babies
• Jewelry
• Sporting Goods
• Entertainment & Gaming
• Other

Italy Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

• Spend Share by Age Group
• Spend Share by Default Rate by Age Group
• Spend Share by Income
• Gross Merchandise Value Share by Gender
• Adoption Rationale
• Spend by Monthly Expense Segments
• Average Number of Transactions per User Annually
• BNPL Users as a Percentage of Total Adult Population

Reasons to Buy

• Strategic and Innovation Insights: Gain clarity on the future direction of Italy's Buy Now Pay Later market by analysing strategic initiatives, business model evolution, and innovation-led approaches adopted by key BNPL providers to strengthen market positioning.
• Comprehensive Understanding of BNPL Market Dynamics in Italy: Assess market size, growth outlook, and structural shifts across retail and e-commerce, supported by detailed segmentation by channel, business model, distribution model, merchant ecosystem, end-use sector, and consumer demographics, underpinned by 90+ KPIs.
• Value and Volume-Based KPIs for Market Accuracy: Leverage a robust set of value and volume KPIs, including GMV, average transaction value, transaction volume, active users, revenue, and bad debt, to develop a precise understanding of BNPL adoption, usage intensity, and market maturity.
• Competitive Landscape Assessment: Obtain a clear snapshot of the BNPL competitive landscape in Italy, including market share analysis of leading providers, enabling informed benchmarking and evaluation of market concentration and competitive intensity.
• Actionable Inputs for Market Entry and Expansion Strategies: Identify high-growth categories, priority end-use sectors, and distribution channels to fine-tune go-to-market and partnership strategies, while assessing key trends, regulatory considerations, and risk factors shaping the BNPL ecosystem.
• In-Depth Consumer Behaviour Analysis: Enhance ROI by understanding evolving consumer attitudes and spending behaviour, with insights into BNPL adoption drivers, usage frequency, income and age-based usage patterns, gender splits, and monthly expense segmentation.