Italy’s Banco BPM enters payments deal with Gruppo BCC Iccrea and FSI

(Reuters) – Italy’s third-largest bank Banco BPM said on Friday it agreed together with Gruppo BCC Iccrea and domestic private equity fund FSI to create the country’s second largest player in the payments business.

FSI, founded by former Merrill Lynch banker Maurizio Tamagnini, and unlisted bank Iccrea jointly run the BCC Pay payments business.

Banco BPM partners with NEXI, Europe’s biggest payments company by volume of transactions.

On completion of the deal, Banco BPM said it and Iccrea will control 28.6% each of Pay Holding – which controls BCC Pay – and FSI will hold 43%.

The venture will have a domestic market share of more than 10%, Banco BPM said.

($1 = 0.8903 euros)

(Reporting by Baranjot Kaur in Bengaluru)