Italy sells digital payment unit PagoPA to Poste, state mint for up to 500 million euros

Core Viewpoint - Italy's Treasury has agreed to sell PagoPA, a digital payment platform for public administrations, to the state mint and Poste Italiane for up to 500 million euros ($586 million), raising concerns among Italian banks about increased competition in the payments sector [1][2]. Group 1: Transaction Details - The 500-million-euro valuation includes variable components and future payments, although specific details were not disclosed [2]. - The deal allocates 51% ownership of PagoPA to the mint and 49% to Poste, addressing concerns from banks and Italy's antitrust authority [3]. Group 2: Competitive Landscape - Italian banks are increasingly facing competition in the payments sector from global tech companies like Apple, Alphabet (Google), and PayPal [3]. - Poste Italiane has expanded into a financial conglomerate, diversifying beyond postal services into payments, mobile services, energy supply, insurance, and investment products [3]. Group 3: PagoPA's Role - PagoPA processed 97 billion euros in payments to Italy's public administration in the current year and is expected to be integral to Rome's development of a digital wallet through the IO mobile app [4]. - The IO app allows users to store official documents and make payments to public entities, enhancing the digital payment infrastructure in Italy [4].