A new law in Italy that requires small businesses to accept card payments rather than insist on cash has presented an opportunity that Telecom Italia (TI) is trying to exploit.

The legislation, which came into effect today (30 June), means business owners must take debit card payments for any transaction over €30.

The operator is selling Payleven’s card reader that works with a smartphone or tablet so a business owner can handle card payments.

Using the product will enable professionals, merchants and sole proprietors to comply with the new law, said the partners.

They said the addressable market is over one million small to medium-sized enterprises in Italy.

TI users who subscribe to the operator’s 1GB data package get the card reader at no additional cost by filling in an online form. They do not need to go to a bank branch or open a bank account.

However the partners did not reveal how much they are charging for processing payments on behalf of small businesses.

Usually, the likes of Payleven charge a competitive fee (expressed as a percentage of the sum being processed) to win business from the established card companies but neither company has revealed the charge for the current launch.

The card reader links to a user’s smartphone or tablet using Bluetooth technology. Users download an Android or iOS app which also enables them to gather real-time sales statistics as well as print or send customer receipts via email.