Compass expands in Switzerland with HeidiPay acquisition

By Gloria Methri

Compass, the consumer credit arm of Mediobanca Group, has signed an agreement to acquire BNPL firm HeidiPay Switzerland. HeidiPay is a fast-growing Swiss company with over 400 commercial agreements with major distributors, luxury brands, and technology operators throughout the country.

With this acquisition, Compass will effectively become a consumer credit operator in the Swiss market, through the distribution license held by HeidiPay Switzerland AG.

After closing, HeidiPay Switzerland AG will continue to benefit from its technology and services, providing continuity for a BNPL product offering that is unique in the Swiss market and is being adopted by a growing number of distributors and brands.

With its array of available risk management instruments (origination, collection, and anti-fraud), and with its broad and deep customer database, Compass aims to make its BNPL business scalable and sustainable in a distinctive manner.

The deal will enable Compass to unlock further value from PagoLight, the company’s proprietary, full-digital BNPL solution which can be added to e-commerce websites.

“This deal has a strong industrial rationale and is consistent with the guidelines of our new 2023- 26 Strategic Plan”, said Alberto Nagel, Chief Executive Officer of Mediobanca. “With the acquisition of HeidiPay Switzerland AG, we are launching the geographical diversification of our Consumer Finance division, on the back of cutting-edge digital platforms to grant credit, together with a value-driven management approach that leverages the risk analysis and assessment capabilities that Compass has developed in over 60 years of business.”

Gian Luca Sichel, CEO of Compass said, “The Swiss market is currently considered to be one of those with the highest growth potential in Europe for the Buy Now Pay Later segment. Being able to count on hundreds of commercial partnerships throughout the country enables us to lay the foundations to further grow our client base and expand our consumer credit product offering.”

The closing, which is subject to the relevant regulatory authorizations, is expected in the second half of 2023 and will have negligible impacts on Mediobanca Group’s Core Tier 1.