Bank of Italy study identifies five consumer payment profiles

A new study by the Bank of Italy, utilizing Large Language Models and supervised learning algorithms, has identified five distinct consumer profiles based on payment habits in Italy. The research, based on the SPACE 2024 Eurosystem survey, reveals a fragmented landscape regarding the use of cash versus digital tools.

Approximately 50.2% of Italians are classified as ‘Traditionalists,’ using a mix of cash and cards in physical stores while remaining cautious about new digital services. While 24% of consumers have completely abandoned cash, only 14.6% are considered ‘Well-connected,’ meaning they continuously use various digital channels, including mobile wallets and online shopping.

Other identified groups include ‘Cash Lovers’ (6.6%), who rely almost exclusively on cash, and ‘Digital Skeptics’ (4.6%), who primarily use cash and prepaid cards. The study suggests that payment behaviors reflect broader relationships with savings, credit, and banking services.