Poste Italiane evaluates PagoPA for acquisition

Italy's Treasury has chosen KPMG to evaluate the value of PagoPA, a digital payment company serving the public sector, in anticipation of its acquisition by the state mint and postal service Poste Italiane. This move has sparked concerns within Italy's banking sector, especially among smaller banks grappling with changes in the payment landscape.

Traditional banks are cautious about the rise of non-bank digital payment providers such as Apple, Alphabet, and PayPal. There are fears that Poste Italiane might use PagoPA to strengthen its position in the digital payments arena.

The selection of KPMG is a significant step in the process, as Poste Italiane is poised to become a minority shareholder in PagoPA. Poste Italiane, a diverse financial group, has broadened its services to encompass payments, mobile services, energy supply, insurance, and investments.

PagoPA collaborates with banks to offer clients access to its services through online banking. This year, the company facilitated payments amounting to 46.66 billion euros for Italy's public administration. Moreover, PagoPA is expected to play a vital role in the development of IT Wallet, a digital platform for storing official documents and conducting online transactions.

To address competition issues, regulations prevent Poste Italiane from exerting dominant control over PagoPA. The state mint will hold the majority stake in PagoPA, ensuring a balanced governance structure for the company's operations.

The assessment of PagoPA by KPMG marks a crucial step in its potential sale to state entities. This development highlights the evolving landscape of digital payments in Italy and the strategic positioning of key players like Poste Italiane. As PagoPA continues to facilitate secure and efficient digital transactions, its role in Italy's payment ecosystem is set to expand, offering citizens enhanced convenience and accessibility.