Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Nexi open to options as Banco BPM seeks partner

by Staff GBAF Publications Ltd
0 comment

Nexi open to options as Banco BPM seeks partner

By Valentina Za

MILAN (Reuters) -Italian payments giant Nexi is keen to enter partnerships with lenders and will adjust to their preferred models, it said on Wednesday as leading banks UniCredit and Banco BPM review options for their payments businesses.

Nexi CEO Paolo Bertoluzzo made the comments as the group confirmed 2023 guidance after reporting first-quarter profit in line with forecasts, though revenue exceeded expectations.

Banco BPM is working to select a partner by the end of June for its retailers’ and payment card business, which it has valued at 2 billion euros ($2.2 billion) by factoring in future fees.

Sources have said that Nexi is in the running, though Nexi traditionally acquires full ownership of banks’ merchants payment businesses, sometimes over years, as with its recent deal with Spain’s Sabadell.

Banco BPM Chief Executive Giuseppe Castagna this week said that Banco BPM was seeking an accord that left it “in the driving seat” as in all of the bank’s other partnerships.

“Different models can work and we are keen to be open to what ultimately banks sees as their strategy,” Bertoluzzo said, adding that the valuation of the business and related up-front payment would need to vary accordingly.

UniCredit, meanwhile, is conducting a review of its payment operations across its 13 markets. A source with knowledge of the matter said the bank expects to complete the process by the end of September.

“Everywhere … banks continuously revisit their payments strategies,” Bertoluzzo said, adding that the business is becoming increasingly technology-centred requiring dedicated partners.

“Specialisation in digital payments is becoming the rule of the game,” he said.

Nexi reported a 13.6% rise in first-quarter core profit as transaction volumes grew by double-digit percentages across all its markets, a trend that continued in April.

Revenue rose 9% year on year to 741.7 million euros, above an analyst consensus gathered by the company.

Earnings before interest, tax, depreciation and amortisation (EBITDA) was 335.7 million euros, in line with forecasts, with the core profit margin rising by 183 basis points.

($1 = 0.9084 euros)

(Reporting by Valentina ZaEditing by David Goodman)