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Italy asks Poste and state mint to restart talks about PagoPA

Two sources with knowledge of the situation said that Italy wants the state-backed Poste Italiane to resume talks about buying PagoPA, Treasury's platform for digital payments to public administration.

According to a plan drawn up last year, Poste, which has expanded its business beyond mail and parcels into financial, broadband, and energy supply, would take a minor stake in PagoPA, thereby bolstering its payments business.

Reports from April indicated that negotiations had hit a snag regarding the valuation of PagoPA. Poste and Mint questioned a price tag determined by an adviser to the Treasury of 500 million euro ($581 millions).

One source, who refused to be identified due to the sensitive nature of the issue, said that the parties were now trying to finalise an agreement in September. However, no formal deadline had been set.

PagoPA will play a key role in the Italian Government's efforts to create a digital wallet via the IO app. This year, PagoPA handled payments worth 57 billion euro to Italy's government administration.

It allows users to store documents such as proof of digital identity, which they can use to access online services and make payments.

Poste's stake in PagoPA is alarming to Italy's banking sector. It faces stiff competition from Apple, Alphabet, and PayPal in the digital payments arena.

Sources close to the issue said that Poste was concerned about the impact of PagoPA's plans to develop a digital platform to allow public administrations and courts to send and receive legal notifications.

(source: Reuters)