Milan-based Mediobanca Group is acquiring a local fintech and competing with local consumer credit institutions. Switzerland is a testing ground for its international ambitions.
Compass, the consumer credit subsidiary of Italy's Mediobanca Group, has signed an agreement to fully acquire Heidipay Switzerland, according to a statement from the Milan-based universal bank.
Although the purchase price wasn't disclosed, the impact on the listed banking group's capitalization is seen as «negligible.»
Distribution License
The acquisition is a fast-growing Swiss fintech specializing in payment solutions in the buy now pay later (BNPL) segment, which was booming until recently. Heidipay has over 400 commercial agreements with major retailers, luxury brands, and technology providers, all operating in Switzerland.
Compass had a 19.5 percent stake in the e-commerce startup's holding company since last August and will now deepen its collaboration. With the purchase, Mediobanca becomes a provider of consumer loans in Switzerland and can use Heidipay's Swiss distribution license.
The transaction is in line with the goals of its «One Brand One Culture» strategic plan running until 2026 with which the banking group intends to push its consumer finance business, using a digital sales platform and entering new markets.
Developing a BNPL Solution
«The Swiss market is currently considered to be one of those with the highest growth potential in Europe for the Buy Now Pay Later segment,» according to Compass CEO Gian Luca Sichel.
The acquisition will enable Compass to further develop its own BNPL solution, Pago Light, making it fit for use abroad. The product was launched in 2021 for terminal payments and is now operational in more than 12,000 stores and over 150 e-commerce platforms in Italy.
The transaction is expected to close in the second half of 2023.
A tip from «AHO»?
It's an open question whether the advice of a well-known banker in Switzerland influenced Mediobanca's current move. António Horta-Osório received a consulting mandate from a major Italian bank in the summer of 2022 with the explicit remit of strengthening the bank's international positioning.
Horta-Osório resigned from his position as Credit Suisse chairman at the beginning of 2022 after less than a year for violating Swiss Corona rules through non-compliance with travel restrictions and quarantine regulations.
