Mediobanca’s Compass acquires HeidiPay Switzerland
Compass, the consumer credit arm of Italy’s Mediobanca Group, has acquired 100% of HeidiPay Switzerland AG from parent company HeidiPay for an undisclosed sum.
Mediobanca’s Compass acquires HeidiPay Switzerland
The acquisition will enable Compass to become a consumer credit operator in the Swiss market through HeidiPay Switzerland’s distribution licence. It will also enable Compass to consolidate its partnership with HeidiPay, in which it holds a 19.5% stake after leading the company’s funding round in August 2022.
Founded in 2021, HeidiPay focuses on the development of digital platforms to support buy now, pay later (BNPL) for e-commerce and physical merchants. HeidiPay Switzerland claims over 400 commercial agreements with distributors, brands and technology operators.
Through the acquisition, Compass says with its risk management tools (origination, collection and anti-fraud offerings) and broad customer database, it will be able to make its BNPL business “scalable and sustainable in a distinctive manner, hard to be replicated by pure fintech operators”.
The deal will also enable Compass to strengthen PagoLight, its proprietary digital BNPL solution, and create the basis for developing an international product offering for multi-country merchants.
Initially launched in 2021 for physical stores only, PagoLight is used in Italy by more than 12,000 physical points of sale (POS) and claims a growth rate of 1,000 new installations per month. It is also used by more than 150 e-commerce platforms.
“The Swiss market is currently considered to be one of those with the highest growth potential in Europe for the BNPL segment,” says Gian Luca Sichel, CEO of Compass.
“Being able to count on hundreds of commercial partnerships throughout the country enables us to lay the foundations to further grow our client base and expand our already broad consumer credit product offering, with a significant contribution to be made from the first year of activity.”
