Italy’s Treasury has finalised an agreement for the sale of digital payment unit, PagoPA, to the state mint and postal operator Poste Italiane for up to €500m ($586m).
To address objections from both banks and Italy’s antitrust authority, the agreement allocates 51% of PagoPA to the state mint, with the remaining 49% going to Poste Italiane.
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According to Reuters, the valuation comprises variable components and future payments, though the mint did not provide additional specifics.
Earlier this year, PagoPA encountered disagreements over its valuation in the planned sale to Poste Italiane.
In recent months, Italian banks have expressed concerns that the sale could intensify competition in the digital payments sector, particularly for smaller lenders.
Sources previously informed Reuters that banks had expressed worries to the Treasury that Poste Italiane could leverage PagoPA to further strengthen its position in the digital payments sector, where it already holds a notable presence, potentially increasing competition with banks.
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By GlobalDataBanks in Italy are said to be facing increasing competition in payments from global technology companies such as PayPal, Apple, and Google’s Alphabet, Reuters noted.
Poste Italiane has diversified its operations, moving beyond postal services into payments, energy supply, mobile services, insurance, and investment products.
The company operates 12,800 post offices and employs about 119,000 staff, with total financial assets of €601bn.
Poste Italiane delivers financial, payments, logistics, insurance, telecommunications, utilities, and digital services to households, businesses, and public administrations across Italy.
PagoPA processed €97bn in payments to Italy’s public administration in 2025. It is anticipated to play a central role in the government’s digital wallet initiative via the IO mobile app, which enables Italians to store official documents and make payments to public entities.
PagoPA is said to operate technology platforms that underpin Italy’s public administration digital transformation, providing advanced solutions that connect citizens, private enterprises, and the public sector.
