Nexi: Between Structural Growth and Competitive Erosion

Nexi offers merchant acquiring, card issuing, and digital banking services to its clients. Through the combination and shedding of various payment assets, Nexi has created a compelling suite of offerings across Europe. However, growing complexity in the payments space demands investments, and an inorganic growth strategy that has been at the core of Nexi no longer appears to guarantee success. Nexi is faced with increasing competition around its core acquiring and issuing capabilities, which is compressing margins and forcing Nexi to increasingly pass on a larger share of its scale advantages to customers.