Mediobanca, Compass complete acquisition of HeidiPay Switzerland

By Gloria Methri

Compass, the consumer credit arm of Mediobanca Group, has completed the acquisition of HeidiPay Switzerland AG, the FinTech specializing in the Buy Now Pay Later (BNPL) segment.

The deal, signed in June 2023, strengthens the partnership with HeidiPay AG, which specializes in the development of digital platforms to support BNPL in the world of e-commerce and physical merchants. Compass has held a 19.5% stake in the FinTech since August 2022.

The acquisition also adds to Compass’s geographical diversification, making the company, through the distribution license held by HeidiPay, a fully-fledged new consumer credit operator on the Swiss market.

The investment is consistent with the objectives of the 2023-26 Strategic Plan “One Brand-One Culture”. It provides for the enhancement of the Mediobanca Consumer Finance Division’s distribution structure by developing cutting-edge digital platforms in Italy and elsewhere.

HeidiPay Switzerland AG has over 500 commercial agreements in place with distributors, luxury brands, and technology operators, which will serve as the basis for the international expansion of PagoLight, Compass’s proprietary, full-digital BNPL solution.

Launched in 2021 for physical stores only to begin with, PagoLight is now one of the leading BNPL solutions in Italy, with an aggregate deal volume of approximately €200m in FY 2022-23. Available in more than 13,000 physical POS and on 200 e-commerce platforms, PagoLight will strengthen its footprint in the country due also to the acquisition of FinTech operator Soisy, which brings with it 700 new branded e-commerce agreements.

Being able to count on the risk management instruments it has implemented in over 60 years of business, and on new AI tools integrated into the digital platform developed in conjunction with HeidiPay, Compass will make its BNPL business scalable and sustainable in the Swiss market as well as in Italy.