Trends
Italy selects KPMG to evaluate digital payment platform PagoPA
OUR TAKEWhile PagoPA will still be managed by a state-controlled entity, the prospect of it changing hands has caused consternation in Italy’s crowded banking sector. In Italy, many small banks are struggling to keep up with rapid changes in the payments industry.–Zora Lin, BTW reporter What happene…
Headline
OUR TAKEWhile PagoPA will still be managed by a state-controlled entity, the prospect of it changing hands has caused consternation in Italy’s crowded banking sector. In Italy, many small banks are struggling to keep up with rapid changes in the payments industry.–Zora Lin, BTW…
Context
OUR TAKE While PagoPA will still be managed by a state-controlled entity, the prospect of it changing hands has caused consternation in Italy’s crowded banking sector. In Italy, many small banks are struggling to keep up with rapid changes in the payments industry. –Zora Lin, BTW reporter The Italian finance ministry chose accounting firm KPMG to set the price for PagoPA. PagoPA, a company that handles digital payments in the public administration, is being sold by the Ministry of Finance to Poste Italiane , Italy’s national mint and postal service.
Evidence
Pending intelligence enrichment.
Analysis
Banks are concerned about the growing presence of non-bank digital payment providers such as Apple, google parent Alphabet or PayPal, and fear that the Post could use PagoPA to strengthen its position in the digital payments market. To address competition concerns, the government blocked the Postal Service from signing a governance agreement under which it would exercise dominant influence over PagoPa, in which the National Mint would be a majority shareholder. PagoPA, which works with banks to allow lenders to serve their customers via online banking, processed $50 billion in payments to Italy’s public administration this year. The payments company will also play a leading role in the Italian government’s efforts to establish an IT wallet, a digital wallet in which Italians will be able to store official documents, including digital identification for online access to public services, as well as payments. Also read: Adani group plans entry into digital payments and e-commerce
Key Points
- PagoPA, a company that handles digital payments in the public administration, is being put up for sale by the Finance Ministry.
- The rise of non-bank payment providers has put traditional banking under increasing competitive pressure in the digital payments space.
Actions
Pending intelligence enrichment.
