Payments, this is why the duel between the post office and banks is looming

According to Abi, Poligrafico and Poste would have joint control

And once more: with the passage of control of PagoPa to Poligrafico and Poste, according to the memorandum, “therefore materializes the possibility that joint control of the new PagoPA might be configured so that each of them is potentially able to exercise an influence decisive on the commercial activity of the new company, being able to prevent the taking of decisions through the exercise of a right of veto”. The document then highlights how among the operators who use PagoPa for transactions, in addition to Poste, there are its electronic money institution PostePay and LisPay, the electronic money institution controlled by Lis (which boasts agreements with a extensive network of tobacconists for physical payments) in turn purchased by Poste. The transfer of control of PagaPa, therefore, would have the “consequence of a significant alteration of the competitive balance between PostePay/LisPay/Poste Italiane compared to the other operators participating in the platform – it is stated – the first two, and in some cases also directly Poste Italiane, can undermine competitive equality and benefit from preferential treatment due to the possibility of Poste Italiane influencing the choices of the PagoPA company. Poste Italiane would simultaneously be the owner and manager of the “network” that transports “PA payment services and other entities” (through its participation in the capital of PagoPA) and supplier of the corresponding payment services, also controlling Postepay and, indirectly, LisPay”. According to the ABI, all this might allow Poste and its subsidiaries to “have a significant impact in determining the development policies of payment systems aimed at the PA or have advance knowledge of them, to the detriment of other operators. This not only with reference to the specific segment of payment services relating to the PA but also of technological intermediation services related to the Platform itself”.

The new ownership structure might impact costs

The memorandum explains how today the various operators who use the platform pay “specific commissions to PagoPA for the use of the Platform, which vary based on specific parameters and the specific agreements negotiated. The review of PagoPA’s ownership structure might therefore also have repercussions on cost policy”. Another issue, then, is the risk that Poste might be favored “in the knowledge of market information of banking customers, payment institutions and operators managing public services (quantitative data and behaviour) thanks to the databases managed by PagoPA and APP I. The availability of information can facilitate the creation and sale of specialized and personalized services for customer clusters, and not only with reference to payment services but also for the development of similar services, for example insurance”.

Fears regarding payments with the It Wallet

Concerns also look to the future: in particular to the establishment of the Italian Digital Wallet System (IT Wallet), with a public and a private version. The public It Wallet will be made available free of charge from the IO APP. “This wallet will be configured as a digital “container” of identity documents – e.g. driving licence, health card and European Disability Card – as well as a tool for making payments to public bodies for services rendered, and also to tend towards the private sector in line with the provisions of the new European regulation aimed at providing a European digital identity which will be available to all citizens and universally usable (recognised by both public and private service providers[1]). The regulation provides for the possibility of using the European Digital Identity Wallet to authorize payments that must also be accepted by the private sector”. In light of all this, the fear of banks and other operators is that the presence of Poste in the capital of PagoPa “might create competitive imbalances in the context of PA payments carried out by the APP IO and, eventually, also for all electronic payments that can be initialized through this wallet, in line with the provisions of European regulations”. In light of all these considerations, Abi’s hope that the legislation be “rethought in a competitive and market logic, taking into account that the regulatory intervention is aimed at valorising and improving the sharing of public information assets but has a significant impact also relevant on the payments side, also providing for the separation of the payments component. Considering the number and importance of the profiles to be regulated, a profound review of the text of the convertible decree-law therefore appears necessary, also evaluating the possibility of using a distinct regulatory vehicle for the solution of the various aspects reported”.

Del Fante: PagoPa doesn’t change, whoever the shareholder is

The CEO of Poste Italiane has a different point of view and expressed it during the hearing in parliament on Wednesday 13 March. On the sale of PagoPa to Poligrafico and Poste “we have heard different things in recent days. There is a law provision that speaks of a majority shareholder, Poligrafico, 100% owned by the State, and therefore perhaps the question should be asked directly to Poligrafico,” said Del Fante. “We can guarantee data confidentiality to the market,” he added, recalling how Poste managed 1 billion transactions on Spid, and in that case “no one has ever asked the problem of confidentiality”. The manager then recalled the distribution agreements in place with banks to sell mortgages and third-party loans at post office counters. “We have been working with banks together for more than 20 years. By law we cannot distribute, provide credit, make loans, but since 2002 we have been distributing loans from financial institutions, so a customer of ours who comes into the post office and wants a consumer loan we analyze it, then we take the customer and pass him on to the bank . We have carried out 48 billion operations, and 4 million Italians have benefited from our territorial presence. In that case we should have the confidentiality problem. But in 22 years we have never had the slightest problem.” Del Fante added that Paga Pa “is a payment circuit on which we have 409 service providers. There is no interest by definition, whoever is the owner of that circuit, in minimizing the scope of the payment circuit itself”. For Poste Italiane, therefore, the change in ownership will not change the conditions for those who operate on the platform.

The role of payments in the second tranche of Poste

The question that other players ask themselves, including international credit card circuits, in the face of similar reassurances is: what then is the interest that pushes Poste to spend money to buy the platform? How do you plan to get back for the investment made? It is true that the Pnrr Legislative Decree provides that the sale follows a singular procedure, namely an evaluation made with the buyers, so the investment might prove to be very limited. However, the fact remains that there will be an expense. Some recall how the prospect of further privatization of the Post Office might contemplate this operation as a system to increase the value of the delivery company.