Inside Italy: Will boycotts of US goods catch on and is Italy finally going cashless?

Inside Italy is our weekly look at some of the news, talking points and gossip from Italy that you might not have heard about. It’s published each Saturday and members can receive it directly to their inbox, by going to their newsletter preferences or adding their email to the sign-up box in this article.

In many parts of Europe, electronic payments are either very commonplace or even a requirement in some shops. 

This is hard to imagine here in Italy, where paying in cash is sometimes still the only available option and it’s frequent for people to always carry some contante on them – just in case.

Of course, if you live in a major city, you’re far less likely to come across cash-only shops. But if you live in a small town or village in a rural part of the country, some businesses may well refuse card payments, at least for small amounts. 

In some cases, you may also find electronic payment machines to have technical malfunctions with alarming regularity.

Italy’s aversion to electronic transactions has long been backed by data.

In the latest Cash Intensity Index, which measures the level of “cash dependency” in 144 countries by calculating the ratio between cash in circulation and GDP, Italy was still among the 30 worst-performing nations in the world, coming in 28th – right between São Tomé and Príncipe and the Maldives.

Italy has also consistently ranked among the least advanced EU member states when it comes to the volume of cashless transactions and existing digital payment infrastructure.

It ranked 21st out of 27 EU nations in the latest Cashless Society Index, trailing behind all Western and Northern European countries.

But while Italy may still be years away from fully going cashless, there are signs that the transition to electronic payments may be becoming less sluggish.

For the first time since records started, electronic payments surpassed cash payments in terms of total transaction value in 2024, according to data from the Innovative Payments Observatory at Milan’s Polytechnic University.

In particular, electronic payments reached €481 billion in value in 2024, marking an 8.5-percent increase from the previous year.

Data from the Innovative Payments Observatory also showed that 43 percent of consumer spending was carried out via electronic payment methods in 2024, with cash usage dropping to 41 percent. 

The remaining 16 percent was covered by bank transfers, direct debits and checks. 

The development was described as “historic” by multiple Italian media reports, and even the director of Milan’s Innovative Payments Observatory, Ivano Asaro, called it a “milestone” which showed “significant changes in merchants’ approach” to electronic payments.

So is Italy at a decisive turning point in its (troubled) history with cashless payments? Are we collectively moving away from banconote and embracing payments by card, phone or smart watch?

It may be too early to tell. 

Signs of a marked shift towards electronic payments during the Covid pandemic were not ultimately followed by the ‘cashless revolution’ many had hoped for. 

But if we are indeed headed in that direction this time, the change would be well worth celebrating with a loud evviva!

Will Italian consumers join growing boycotts of US goods?

Consumers in a number of European countries have begun boycotting American imports in recent weeks following a major shift in the United States’ foreign policy over the Russia-Ukraine conflict and rapidly shifting Washington-Brussels relations amid an escalating trade war.

The Local Sweden reported earlier this month that a Facebook group promoting the boycott of US goods had gained around 40,000 members within a few days, with members of the group sharing tips on alternatives to popular US products.

But similar groups have popped up in other countries including Denmark, Norway, Belgium, Finland, and Germany. In Italy, however, no movement promoting the boycott of US goods has gained any significant momentum so far. 

Earlier this month, Italian media reported on the birth of a ‘Boycott USA’ Facebook group, which focuses on the “exchange of useful information to identify US-branded products and replace them with alternatives from European companies and/or friendly non-European nations”.

But the group currently has just over 1,700 members – a far smaller following compared to boycott movements in Scandinavian countries, where tens of thousands of consumers are avoiding US imports. 

As Italy has no major boycott to speak of at present, is any boicottaggio likely to take root in the coming weeks or months?

This is a very improbable scenario at present. 

Italy’s ruling coalition (Brothers of Italy, League and Forza Italia) – which currently enjoys the support of around 45 percent of voters – has strong ties with US President Donald Trump’s administration and has emphasised the importance of dialoguing with the US despite growing geopolitical tensions.

PM Giorgia Meloni, who is believed to have a close relationship with Trump, has recently praised the US president as a “strong” leader, expressing faith in his ceasefire efforts in Ukraine. 

On the tariffs front, Meloni’s right arm and Foreign Minister Antonio Tajani said last week that “investing more” and “buying more from the US” were necessary steps to avoid a trade war with Washington.

Besides the Italian government’s political and ideological proximity to the US administration, it should also be noted that large-scale boycotts are rare in Italy.

And even when they do occur, they tend to have a limited impact and relatively short duration.

As a final point, the US has had a deep impact on consumers in Italy over the decades, shaping habits and preferences in sectors including fashion, entertainment and technology.

From clothing giants like Nike and Converse to the dominance of Apple and Microsoft in the tech market, many US brands have long been embedded in everyday life in Italy.

For many Italians, giving up American products would mean giving up products that they have long enjoyed or benefitted from. All in all then, consumers in Italy are unlikely to turn against US goods.

Inside Italy is our weekly look at some of the news and talking points in Italy that you might not have heard about. It’s published each Saturday and members can receive it directly to their inbox by going to their newsletter preferences or adding their email to the sign-up box in this article.