Dublin, Feb. 03, 2026 (GLOBE NEWSWIRE) — The “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” report has been added to ResearchAndMarkets.com’s offering.
The BNPL payment market in Italy is expected to grow by 26.2% on annual basis to reach US$10.17 billion in 2026. The buy now pay later market in the country has experienced robust growth during 2022-2025, achieving a CAGR of 29.1%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 21.2% from 2026-2031. By the end of 2031, the BNPL sector is projected to expand from its 2025 value of USD 8.06 billion to approximately USD 26.60 billion.
Over the next 2-4 years, Italy’s BNPL market is likely to consolidate around bank-backed models and regulated providers as CCD II raises compliance thresholds. PSP-driven distribution will reduce reliance on standalone BNPL integrations, increasing competition based on merchant coverage, risk frameworks and funding partnerships. Local players with strong vertical traction and bank alliances are positioned to remain influential.
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.
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.
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.
- 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.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 101 |
| Forecast Period | 2026 – 2031 |
| Estimated Market Value (USD) in 2026 | $10.17 Billion |
| Forecasted Market Value (USD) by 2031 | $26.6 Billion |
| Compound Annual Growth Rate | 21.2% |
| Regions Covered | Italy |
Report Scope
Italy Buy Now Pay Later Key Companies
- Klarna
- Scalapay
- Oney
- PayPal
- Confidis
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
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
For more information about this report visit https://www.researchandmarkets.com/r/ub1u4u
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- Italian Buy Now Pay Later Market
