Nexi is in the spotlight on the stock market thanks to its contract with the ECB for the digital euro

(Il Sole 24 Ore Radiocor) - Nexi is in the spotlight on the Milan Stock Exchange after being selected by the ECB for a ten-year contract linked to the digital euro network. In particular, as Intermonte points out, Nexi, in partnership with Deutsche Telekom, has been selected by the European Central Bank as one of two Network Service Providers for the digital euro, alongside the Spanish consortium Telefonica/Indra.

The 10-year agreement provides for the construction and management of the connectivity infrastructure that will link the Digital Euro Service Platform’s data centres, the national central banks and payment service providers. The Nexi/Deutsche Telekom contract came into force on 28 September and will initially support the pilot project, scheduled for the second half of 2027 and set to run for 12 months. Both consortia must be ready by 2029 for the possible introduction of the digital euro, which remains subject to decisions by the ECB.

“The award consolidates Nexi’s position as a strategic European payments infrastructure and confirms the potential to monetise the digital euro through new technological activities and services for banks, without necessarily requiring significant additional investment beyond that already provided for in the Plan,” the experts point out. In terms of economic value, the tender documentation indicates a maximum value of approximately 178 million over 10 years for the entire Nexi/Deutsche Telekom consortium; this does not represent guaranteed revenue, nor is it entirely attributable to Nexi.

“We believe that Nexi’s gradual involvement in the digital euro reinforces its strategic importance, particularly in light of CDP’s growing role as a shareholder; however, it is still too early to regard this as a catalyst capable of altering the equity story, which remains constrained by weak growth, competitive pressure in Merchant Solutions and limited visibility on the evolution of margins beyond the Plan”, Intermonte adds.

According to Banca Akros, the share price is also being buoyed by a report in the Financial Times stating that Clayton Dubilier & Rice, together with GTCR, the main shareholder of Global Payments, is reportedly considering a possible acquisition and delisting of the US-based payment services group, whose enterprise value stands at around $40 billion. “We view this news as a positive sign for the entire payments sector, as it confirms the continued interest of private equity investors in established payment processing companies, despite the recent weakness in share prices, competitive pressure from fintech operators and concerns about the sector’s growth prospects,” write the analysts at Akros. The potential deal also highlights “the strategic value that financial investors can identify in established payment platforms, particularly where operational efficiency measures and business integration can generate value over time”.