Compass, the Mediobanca consumer credit arm, has acquired 100% of HeidiPay Switzerland AG from HeidiPay AG. HeidiPay specialises in the buy now pay later (BNPL) segment. It has over 400 commercial agreements in place with major distributors, luxury brands and technology operators throughout the country.
With this acquisition, Compass will effectively become a consumer credit operator in the Swiss market. This comes via the distribution licence held by HeidiPay Switzerland AG. The deal enables Compass to consolidate its partnership with the holding company HeidiPay AG. The fintech specialises in the development of digital platforms to support BNPL in e-commerce and for physical merchants. Compass has held a 19.5% stake in the fintech since August 2022.
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HeidiPay deal complements Mediobanca 2023-2026 Strategic Plan
According to Mediobanca, Compass will be able to make its BNPL business scalable and sustainable in a distinctive manner. The aim is to make it difficult to be replicated by pure fintech operators. Mediobanca says that the HeidiPay deal is consistent with the objectives of its “One Brand One Culture” 2023-26 Strategic Plan. This strategy includes major enhancement of the Mediobanca Consumer Finance Division’s distribution structure. Specifically, the bank aims to develop a cutting-edge digital platform, and strengthening its client base through expansion into new markets.
In addition, the deal will enable Compass to unlock further value from PagoLight. This unit is the company’s proprietary, full-digital BNPL solution.
PagoLight growth in Italy
Mediobanca says that this can be added into e-commerce websites, creating the basis for developing an international product offering to support multi-country merchants, which are typical needs of online players. Initially launched in 2021 for physical stores only, PagoLight is currently used in Italy in over 12,000 physical POS. The network continues to grow, with approximately 1,000 new installations per month. It incorporates over 150 e-commerce platforms with an overall acquisition capacity of around 20,000 clients per month. This is enhanced by the recent acquisition of the fintech operator Soisy.
“This deal has a strong industrial rationale. It is consistent with the guidelines of our new 2023- 26 Strategic Plan”, said Alberto Nagel, CEO, Mediobanca.
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By GlobalData“With the acquisition of HeidiPay Switzerland AG we are launching the geographical diversification of our Consumer Finance division. This is on the back of cutting-edge digital platforms to grant credit. A value-driven management approach leverages the risk analysis and assessment capabilities Compass has developed in over 60 years of business.”
“The Swiss market is currently considered to be one of those with the highest growth potential in Europe for the BNPL segment”, added Gian Luca Sichel, CEO of Compass. “Counting on hundreds of commercial partnerships throughout Switzerland enables us to lay the foundations to further grow our client base. It expands our already broad consumer credit product offering, with a significant contribution to be made from the first year.”
The deal is subject to the relevant regulatory authorisations, expected in the second half of 2023.
