Leading Italian bank becomes minority shareholder in HeidiPay

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17.10.2022
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Buy Now Pay Later start-up HeidiPay has attracted Compass, Italy’s third largest consumer credit lender, as investor. The capital injection includes credit lines and the acquisition of a 19.5% stake in the Geneva based company.

HeidiPay supports Buy Now pay Later (BNPL) in the e-commerce segment. The start-up has developed one of the most important plug-ins in the market, which can already be activated for multi-country product offerings. On the back of an exponential growth in its first year of operation in Switzerland, HeidiPay has gained over 300 merchant partners including prestigious brands and retailers from different sectors including watches, art, beauty and fashion. This capital injection enables it to scale its existing operations, while benefiting from significant credit lines to support the requirements of large merchants.

HeidiPay attracted Compass Banca SpA, the consumer credit arm of Mediobanca Group, as investor. This capital injection secures both growth equity and credit lines to support its fast expansion in the Swiss market and internationally. In addition, Compass has selected HeidiPay as “BNPL enabler” for the Italian market.

Launch of its “BNPL enabler” solution in Italy

HeidiPay is powering Compass’ ecommerce BNPL solution in Italy, branded PagoLight. HeidiPay provides a full set of ecommerce plugins/APIs, technology stack, anti-fraud & conversion analytics tools to enable Compass to deliver one of the most flexible BNPL solutions in the Italian market. Compass retains full control of the risk decisioning, funding and post-sale operations, leveraging its market leading know-how and infrastructure. With one single integration/API, merchants with an international presence are now able to offer flexible terms from 3 to 12 months in Italy and from 3 to 24 months in Switzerland, with more countries going live soon.

In FY 2021-22, the continuing enhancement of Pagolight operations resulted in almost €70m in BNPL finance being granted, a trend which has continued to increase even since the Summer. Compass’s capability to acquire new clients through BNPL is expected to rise fourfold by the end of FY 2022-23 (from 5,000 to 20,000 new clients per month).

“The BNPL market is at a turning point, where leading banks are realizing they have a key role to play, leveraging their superior risk management, operational scale and balance sheet”, said Matteo Bozzo, co-founder and CEO of HeidiPay. “We believe the fintech + banks partnership is the winning model of tomorrow if both work hand in hand toward the same goal. In less than 4 months, we were able to launch with Compass a market leading BNPL offering in Italy, and we continue to work together to bring new innovations to the market in record time.”

(Press release / SK)

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