In recent years, the payment market in Italy has changed rapidly. According to research conducted by the Innovative Payments Observatory of the Polytechnic University of Milan, the total value of digital payments in Italy reached €518 billion in 2025—up 7% from the previous year.

In 2024, Italy reached a historic milestone when digital payments surpassed cash. Currently, digital tools account for 45% of customer spending, and banknotes and coins account for 38%. Wire transfers and direct debits from checking accounts are also on the rise—reaching 17%.

In this context, choosing the right payment service provider (PSP) has become an important business decision. It can affect the customer experience, conversion rates, and the ability to expand into new markets.

In this article, we explain PSPs, including what they do and how they are different from traditional merchant accounts. We also provide advantages offered by modern PSPs and criteria to consider when choosing the right solution for your business in 2026. Lastly, we examine the payment market and the technologies that are reshaping it.

Key takeaways

• Payment service providers (PSPs) have developed into increasingly comprehensive platforms that combine payment gateways, transaction processing, antifraud tools, and features to increase authorisation rates. For many Italian businesses, a single PSP can replace infrastructure that previously required multiple providers and separate integrations.
  
• In 2026, the choice of a PSP depends on more than the fees charged. Aspects such as network tokenisation, one-click checkout, authorisation optimisation, and the ability to support emerging business models can directly impact revenue and the customer experience.
  
• The distinction between PSPs and merchant accounts has gradually blurred. Many PSPs now offer an integrated infrastructure that simplifies the acceptance of online payments, reduces operational complexity, and enables businesses to expand more easily into other markets.
  
• With digital payments becoming increasingly widespread in Italy and the introduction of new European regulations—such as Payment Services Directive 3 (PSD3) and Financial Data Access (FIDA)—the sector is developing at an accelerated pace. Businesses that choose flexible platforms can adapt more easily to technological and regulatory changes in the coming years.
  

What are PSPs?

A PSP is a business that provides infrastructure to accept, process, and manage electronic payments. With a PSP, businesses can receive payments via cards, digital wallets, wire transfers, and other methods without establishing separate connections with each payment network or financial institution.

Modern PSPs play a key role in e-commerce and digital services. In addition to providing payment gateways, they integrate payment flows with sales platforms, management systems, and reporting tools.

In practice, when a customer completes an online purchase, the payment gateway transmits the transaction data to the PSP. Then, the PSP communicates with the issuing bank and the relevant payment networks to obtain authorisation. If the request is approved, payment is processed, and the funds are subsequently credited to the business.

In recent years, PSPs have expanded their features. Today, many include antifraud systems, support for recurring payments, reconciliation tools, and advanced features to improve transaction authorisation rates.

What do PSPs do?

The main function of a PSP is to enable businesses to accept payments easily and securely. However, behind this activity is a set of complex processes that are managed automatically.

Process and authorise transactions

When a customer makes a purchase, the PSP coordinates the exchange of information among the payment gateway, payment network, and issuing bank. This process takes a few seconds and determines whether the transaction can be authorised.

PSPs generally support multiple payment methods, including credit cards, debit cards, digital wallets, and local payment methods. This flexibility helps businesses adapt to customer preferences in different markets.

Manage security and compliance

Security is one of the most important features of a PSP. They use encryption systems, fraud prevention tools, and procedures that comply with the Payment Card Industry Data Security Standard (PCI DSS) and European Strong Customer Authentication (SCA) requirements.

Link payments to corporate systems

A modern PSP does more than process transactions. It also offers application programming interfaces (APIs), dashboards, and integrations that connect payment flows to e-commerce systems, business management software, and invoicing tools.

This integration helps reduce manual tasks and provides a more comprehensive overview of revenue.

Comparison of PSPs and merchant account providers

Historically, many businesses that accepted card payments had to manage various components of their payment infrastructure separately. This would typically include a merchant account provided by a bank and a payment gateway to process online transactions. Today, this distinction is less apparent because many PSPs offer integrated platforms that combine payment processing, security tools, and management features within a single solution.

A merchant account is used to receive and settle funds from card transactions. On the other hand, a PSP offers a broader infrastructure that includes transaction processing, security tools, and integration features. Many PSPs combine these aspects into a single platform, reducing operational complexity and simplifying international expansion.

For businesses that operate online or sell in multiple countries, using an integrated online PSP can be easier than managing multiple providers separately.

How does a PSP work?

A PSP receives the information transmitted by the payment gateway and forwards it to the payment network and issuing bank to obtain authorisation. Once the transaction is approved, the PSP coordinates the transfer of funds to the business’s account. All of this happens automatically and in a few seconds.

Advantages of using a PSP

For many businesses, choosing a PSP is about more than accepting online payments. Below, we outline the main advantages of using a PSP.

Single integration for multiple payment methods

Customer preferences continue to develop. Some customers prefer to pay by card, while others use digital wallets or other payment methods. Integrating each solution separately can be time-consuming and increase technical complexity.

On the other hand, a PSP offers access to several payment methods through a single integration. With this approach, businesses can adapt more easily to different markets and offer consistent purchasing experiences across all channels.

Higher authorisation rates and fewer declined payments

Every declined payment represents a missed sales opportunity. For this reason, the ability to increase authorisation rates has become one of the main differentiators among PSPs in 2026.

Many online PSPs use technologies that help reduce unnecessary rejections, including the following:

• Network tokenisation: Replaces card data with more secure and up-to-date tokens
  
• Automatic credential updates: Reduces issues related to expired or replaced cards
  
• AI-based optimisation systems: Designed to increase authorisation rates
  

Even small improvements in authorisation rates can have significant impacts on revenue, especially for businesses that handle large volumes or operate subscription-based business models.

Faster checkouts and higher conversion rates

Checkout speed directly affects cart abandonment. Customers expect simple and fast processes, especially when using mobile devices.

With modern PSPs, businesses can offer experiences that include saved login credentials and one-click checkout. This can reduce the number of steps required to complete purchases, lead to a better purchasing experience, and increase conversion rates.

Greater flexibility for growth

A business can start by selling in a single market and then expand abroad, introduce recurring payments, or add new sales channels. Choosing a flexible PSP can support this growth without having to replace existing infrastructure.

Preparation for new business models

Digital commerce is changing rapidly, and payment systems must be able to support new business models. In addition to traditional e-commerce, increasingly automated experiences and AI-based processes are emerging.

A modern infrastructure must be capable of supporting the following:

• Payments initiated via API
  
• Subscription models and recurring charges
  
• AI-based automated processes
  
• New agentic commerce scenarios where software and AI assistants perform actions on behalf of customers
  

The Italian market for PSPs in 2026

In recent years, the payment market has become more competitive and diverse. Alongside established operators, specialised platforms have emerged that meet the needs of businesses of different sizes and in different sectors.

The following are among the leading operators in the Italian market:

• Nexi: This PSP was created in 2017 from the merger of Istituto Centrale delle Banche Popolari Italiane (ICBPI) and CartaSi, but its roots date back to 1939. It maintains a prominent position in the Italian market because of solutions designed for both brick-and-mortar stores and e-commerce.
  
• Adyen: This platform enables the management of both online and in-person payments through a single infrastructure and is used by several international businesses.
  
• SumUp: This PSP is primarily aimed at small businesses and professionals and offers solutions that are easy to implement.
  
• Satispay: This provider continues to expand its offerings because of its growing popularity among businesses and customers.
  
• Stripe: This platform is used by businesses of all sizes to manage online, recurring, and international payments through a single infrastructure.
  

In an increasingly competitive environment, PSPs are distinguishing themselves by their abilities to process transactions and by the additional features they offer businesses. Tools for increasing authorisation rates, antifraud systems, and integration features play an increasingly important role in business decisions.

How to choose a PSP in 2026

There is no single PSP that is best for all businesses. The most suitable solution depends on the business model, markets covered, and growth objectives.

Before choosing an online PSP, it’s helpful to consider the following important factors:

• Support for the payment methods popular with customers
  
• Ability to increase authorisation rates
  
• Quality of the checkout experience
  
• Ease of integration with implemented systems
  
• Opportunities to expand into new markets
  
• Adaptability to new business models
  

Let’s look at each one in detail.

Support for popular payment methods

Credit cards, digital wallets, and local payment methods vary in importance depending on the industry and the countries where the business operates. A PSP with broad coverage can help businesses adapt more easily to customer preferences and expand without requiring additional integrations.

Ability to increase authorisation rates

A higher authorisation rate can have a direct impact on revenue. For this reason, when evaluating a PSP, it’s advisable to check for certain features, including the following:

• Network tokenisation
  
• Automatic card updates
  
• Authorisation optimisation tools
  
• Advanced fraud prevention systems
  

Checkout experience and ease of integration

A complex checkout process can increase cart abandonment. At the same time, technical implementations that take too long can slow down the business’s growth.

For these reasons, many online PSPs offer APIs, documentation, and integrations that easily connect payment systems to e-commerce platforms, business management software, and invoicing tools.

Ability to grow internationally

If a business plans to expand abroad, it must evaluate a PSP’s ability to support local currencies, languages, and payment methods. An international platform can simplify growth and prevent future migrations.

Preparation for new business models

The evolution of AI and automated systems is opening up new possibilities. An API-based infrastructure designed to support flexible payment processes can help businesses adapt faster to market changes.

What is the best PSP for e-commerce in Italy?

There is no single “best” PSP. The most suitable solution depends on certain factors, such as the following:

• Sales volumes
  
• Markets covered
  
• Need to accept recurring payments
  
• Level of customisation required
  

In general, many businesses prefer platforms that combine ease of integration, high authorisation rates, and international support.

Payment Services Directive 3 (PSD3) and Financial Data Access (FIDA): How the European regulatory framework is changing

In recent years, the payments sector has undergone significant regulatory changes. Following the revised Payment Services Directive (PSD2), the EU is working on a new package of rules that includes PSD3, the Payment Services Regulation (PSR), and FIDA.

The goal is to make payments more secure, promote competition, and create a more open and interoperable financial environment. For businesses, these changes could result in new services and easier integration among financial institutions.

PSD3 and the PSR

PSD3 and the new PSR aim to update the regulatory framework introduced by PSD2 to adapt it to the evolution of digital payments. The new rules aim to strengthen customer protections and fraud prevention, reduce regulatory discrepancies among EU member states, and promote a more competitive and innovative payments market.

For Italian businesses, the greatest impact could come from greater standardisation of procedures and a more integrated environment for banks, fintech businesses, and PSPs.

FIDA and the evolution of open finance

FIDA is one of the pillars of the European strategy for open finance. The goal is to enable customers to securely share a wider range of financial data with authorised parties.

In the long term, this approach could foster the emergence of more personalised financial services and greater integration among payments, banking, and financial management. For businesses, choosing a PSP that can quickly adapt to regulatory changes can help reduce operational complexity and enable new growth opportunities.

How Stripe supports Italian businesses

Business needs have changed in Italy, especially compared to a few years ago. Today, many businesses want platforms that allow them to accept payments and help them increase conversions, expand abroad, and adapt quickly to market changes.

Stripe offers a suite of tools designed to support these needs through a single infrastructure. Below, we examine them in detail.

A single payment gateway for more than 100 payment methods

Thanks to Stripe, businesses can accept payments via credit cards, digital wallets, bank transfers, and several local payment methods. With a single integration, businesses can enter new markets without managing separate providers.

Because of APIs and development tools, businesses can also easily integrate the PSP with e-commerce platforms, business management software, and customised applications.

Stripe Authorisation Boost to improve authorisation rates

Maximising the number of approved transactions can have a direct impact on revenue. Stripe Authorisation Boost uses AI-powered optimisations and automatic card updates to increase the likelihood that transactions will be approved.

Network tokenisation and greater reliability

Network tokenisation replaces card data with updated, more secure tokens. This mechanism can help reduce problems related to expired or replaced cards and improve authorisation rates.

Besides enhancing security, network tokenisation can be particularly useful for businesses that handle recurring payments and subscription-based models.

Link by Stripe and one-click checkout

A simple checkout process can directly impact conversion rates. Link, a digital wallet built by Stripe, allows customers to complete purchases quicker by using saved payment information.

By reducing the number of steps required to complete a purchase, businesses can offer a smoother experience and reduce cart abandonment.

Support for new business models

The development of AI is opening up new possibilities for e-commerce. Businesses are beginning to experiment with automated processes, API-based systems, and new models of agentic commerce.

Because of programmable infrastructure and tools designed to support flexible payment flows, Stripe enables businesses to adapt more easily to new business models.

Ability to expand internationally

Whether you are launching a new business or already operating in several markets, a PSP must be able to support your business’s growth. Stripe supports businesses of all sizes with tools designed to manage online payments, recurring billing, marketplaces, and international operations through a single platform.

Certain features can have a significant impact on a business’s growth, such as authorisation rates, quality of the checkout experience, ease of integration, and the ability to adapt to technological and regulatory changes. In an ever-changing environment, choosing a flexible platform with the ability to grow can help you prepare for future opportunities.