The official currency of Italy is the euro, but the country is still somewhat of a cash-based economy. You won't always pay in cash, as there are shops and merchants in Italy that are well-equipped to accept card payments — Visa and Mastercard are more common than American Express.

Italy is currently in a state of transition, but in 2026, credit cards are the primary method of payment in almost all urban and tourist areas. Following government initiatives to encourage digital payments, nearly every merchant—from high-end boutiques in Milan to small gelato shops in Rome—is legally required to accept card payments. "Contactless" and mobile payments like Apple Pay and Google Pay are ubiquitous. However, Italy has not gone "cashless" like the Nordic countries. You still absolutely need to carry a small amount of cash (Euros) for specific situations: paying for a 1-Euro espresso at a traditional stand-up bar, using public restrooms (which often require coins), or shopping at small local markets in rural villages. In the southern regions and smaller hilltop towns of Tuscany or Umbria, some small "Mom and Pop" trattorias may still prefer cash or claim their card machine is "broken." A good rule of thumb for Italy is to use your card for everything over 10 Euros but keep 40–50 Euros in small bills in your wallet for "just in case" moments.