Mediobanca Doubles Down on BNPL With 2 New Investments

Compass, the consumer credit arm of Italy’s Mediobanca Group, has completed two deals in the buy now, pay later (BNPL) space, according to a Thursday (Oct. 13) press release.

In the first, Compass has purchased Italian BNPL provider Soisy, which provides an installment-based credit solution for eCommerce retailers. Founded in 2017, Soisy has developed agreements with 800 eTailers, has more than 70,000 clients, and lends around 50 million euros to consumers annually, per the release.

In the second deal, Compass has acquired a 19.5% stake in HeidiPay, a Swiss BNPL FinTech that allows online stores to offer shoppers flexible, interest-free BNPL payments spread out over up to 10 months.

Mediobanca did not reveal how much Compass paid in either case.

While Compass already had a foot in the deferred payments market thanks to the PagoLight BNPL service, the new investments will allow it to accelerate its growth in the space, per the announcement.

While PagoLight was initially launched as an in-store payment method, These new latest acquisitions will allow Compass to diversify its offering and further expand into the eCommerce space.

As the PYMNTS October BNPL Tracker explores, BNPL providers are increasingly tapping into alternative markets such as digital services, education and healthcare.

Read the report: Buy Now, Pay Later: Unlocking the True Potential of BNPL for Services

The HeidiPay transaction will also allow Compass to expand its geographic footprint outside of Italy.

“The two deals have a strong strategic and business rationale as far as we are concerned, consistent with the innovation process launched at group level,” Mediobanca CEO Alberto Nagel said in the press release.

“The synergies we will generate from our acquisition of these two companies will give us access to new expertise and next-generation technology assets, an important value option in a segment such as deferred payments which is changing at such a fast pace. Leveraging these acquisitions will also act as a driver to obtain new clients, not just in Italy but also elsewhere,” he added.

Compass CEO Gian Luca Sichel said BNPL is now an established trend. “Compass is so far the only bank in Italy to seize the opportunities offered by this business and create its own interest-free deferred payment solution with PagoLight,” he said.

“BNPL also allows a bank such as Compass to strengthen our presence in e-commerce, with a focus on certain categories of products and targets in particular, such as younger and digitally-literate clients, which historically have received less coverage from consumer credit.”

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