Banco BPM, Iccrea, and FSI finalise creation of Italy’s second largest payments business

Banco BPM, Iccrea, and private equity fund FSI have completed a strategic partnership, resulting in the formation of Numia, the nation’s second-largest payments operator. This new venture secures over 10% of the market share, positioning itself as a strong competitor in the e-payments sector, particularly against industry giants such as Nexi.

The partnership, originally announced in July, has now secured all necessary legal and regulatory approvals, enabling Numia to operate fully. Numia will control a substantial network comprising nearly 4,000 bank branches, thanks to the extensive distribution networks of Banco BPM and Iccrea, which together hold a combined 57.2% stake in the new entity. FSI, a domestic private equity fund led by Maurizio Tamagnini, holds the remaining 43%.

The deal includes a 500-million-euro payment to Banco BPM for its contributed assets, with more than 200 million euros delivered upfront and the potential for an additional 80 million euros in deferred price components.

Banco BPM’s CEO Giuseppe Castagna highlighted the strategic benefits, noting, “The partnership is an additional and essential channel for us to develop and diversify our revenue sources.”

Numia is poised to handle over 100 billion euros in transactions annually, with a market footprint that includes approximately 8 million cards and 400,000 point-of-sale (POS) terminals. The reach of Numia is reinforced by the dense distribution network provided by Banco BPM’s 1,300 retail branches and Iccrea’s 2,500 branches, representing nearly 20% of Italy’s banking infrastructure.

In terms of financial impact, the deal brings a positive boost to Banco BPM’s capital structure. The bank expects an 88-basis-point improvement to its fully loaded Common Equity Tier 1 (CET1) ratio, although this will be offset by a 49-basis-point reduction due to its equity stake in Numia.

With a robust leadership team led by Massimo Arrighetti as chairman and Fabio Pugini as CEO, Numia is set to expand its market presence and capitalise on growing demand for digital payments in Italy, as well as broader European markets. As the second-largest player in Italy’s e-payments sector, Numia is positioned to challenge the dominance of larger rivals and drive further innovation in financial services.

This development marks a pivotal step for all involved parties, leveraging their combined strengths to create a formidable presence in the fast-evolving payments industry.

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