MILAN (Reuters) - Banco BPM (LON:0RLA) said on Thursday it would scrap for nine months fees on payments of up to 10 euros made using the PagoBANCOMAT cash card system, which the lender's payments partner FSI just invested in.
Italian private equity fund FSI said earlier this month it would spend 100 million euros ($109 million) to become the main minority investor in BANCOMAT, the country's leading cash card system.
In July, FSI had invested 200 million euros to buy Banco BPM's card and retailer payment businesses which it plans to combine with previously acquired activities in a push to compete with European market leaders Nexi (BIT:NEXII) and Worldline.
Banco BPM got a stake in the venture as part of the deal.
Banco BPM said it had scrapped fees for payments worth up to 4.99 euros under a previous accord with BANCOMAT and would evaluate further steps for card payments carried out on international payment systems.
Italy is a digital laggard among EU countries and its ageing population and high level of tax evasion have in the past hampered in the past the spread of card payments.
However, the global COVID-19 pandemic has boosted both card payments in shops and online purchases from homes.
After dropping a plan to boost cash payments following criticism from Italy's central bank and the European Union, Prime Minister Giorgia Meloni's government took aim at fees for small card payments.
However, months of discussions brokered by the government between payment firms, banks and retailers have only yielded a commitment by banks to strive to improve the terms offered for card payments.
Most offers by payments companies such as Nexi already envisage no fees below 10 euros.
($1 = 0.9191 euros)