Customers of the big online retailer will be able to make purchases on its Italian website and pay with a local debit card service called Bancomat Pay thanks to a new local subsidiary that the Italian payments business Nexi said it has collaborated with Amazon to develop.
The Italian payments company Nexi (NEXII.MI) said that it has partnered with Amazon (AMZN.O.) to launch a new local subsidiary that will let customers of the massive online retailer make purchases on its Italian website and pay with a local debit card service called Bancomat Pay. With the participation of Italian private equity fund FSI, which is currently the company’s largest single stakeholder, Italy’s ATM machine operator BANCOMAT, which is controlled by over 100 Italian banks, has been attempting to grow its online payment service, BANCOMAT Pay.
The 34 million Bancomat cards that are now in use are mostly used by Italians to make ATM withdrawals. The primary debit card payment processor in Italy, BANCOMAT, processes over 2 billion annual withdrawals and payment transactions totaling over 160 billion euros. In a statement, Filippo Signoretti, Director of Nexi Merchant Solutions in Italy, stated that the company was a good fit for major global players like Amazon when those companies needed partners with a significant presence in both domestic and foreign markets.
Due mostly to a wave of mergers and acquisitions, the payments industry has expanded quickly in recent years. These corporations sought to acquire the financial strength to keep up with technical advancements while facing competition from new entrants. Italian fund FSI has been making investments in the industry, betting on the possibility of more consolidation. It has acquired a 43% share in Bancomat and is developing a merchants’ payment business in collaboration with banks ICCREA and Banco BPM (BAMI.MI), opening a new tab.
As a technical partner in the Nexi-Amazon deal, Italy’s largest bank, Intesa Sanpaolo (ISP.MI), opened a new tab and owns 18% of BANCOMAT. UniCredit (CRDI.MI), with 11% of the market, is second. A multi-year agreement was reached earlier in April between BANCOMAT and Nexi to create a centralized technological infrastructure that would enable BANCOMAT to independently oversee the new payments it intended to offer.
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