In a significant development within Italy's financial sector, state-owned digital payments firm PagoPA is at the center of a valuation dispute in a planned sale involving the Italian state mint and postal operator, Poste Italiane. The transfer, aimed at keeping PagoPA under public control, has encountered disagreements regarding the company's valuation assigned by financial advisers.

KPMG, the advisor to the Italian Treasury, placed a valuation of €500 million on PagoPA. This figure is now under review after concerns were raised by the potential buyers, the state mint and Poste Italiane. These entities are carrying out a thorough examination of PagoPA's financial data to determine if the business plan justifies the assigned value. Despite the scrutiny, neither the involved parties nor their representatives have offered public comments on the matter.

PagoPA plays a crucial role in Italy's digital payments landscape by facilitating transactions for public bodies via a standardized electronic payment system. The company processed €33 billion in public administration payments this year and is integral to advancing Italy's digital wallet initiative through the IO app. This app allows citizens to store official documents and make digital payments.

While the company would continue to remain under state control post-acquisition, the potential sale has raised concerns among Italian banks. There is apprehension that Poste's acquisition might increase its market dominance in the digital payments sector, which would intensify competition from major technology firms like Apple, Alphabet, and PayPal. Moreover, the rise of stablecoins is presenting additional challenges to traditional banks, particularly concerning cross-border payment facilitation.

The pending sale and ongoing negotiation reviews remain a point of contention without any official declarations from the involved parties. As the situation unfolds, the impact on Italy's digital payments environment and banking sector is being closely monitored.

For further details, visit the full report on Reuters.