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Latest stock market news: payment systems collapse. Shoulder Worldline and drag Nexi, a season of M&A begins

In Paris, Worldline burns 3,7 billion in capitalisation, Nexi hits -20% and Piazza Affari is in the black in Europe. Tim drops to 24 cents

Latest stock market news: payment systems collapse. Shoulder Worldline and drag Nexi, a season of M&A begins

The first victims of the recession are retreating on the eve of the ECB summit which should bring a modest benefit to the stocks most stressed by the drop in rates. Among these, like Agatha Christie's ten little Indians, stands out landslide of newbies in the digital payments sector, already the flagship of European fintech. This morning, to amplify the decline in price lists (in Milan Ftse Mib in red of around 0,75% at 13pm) the chasm in the sector triggered in Paris by the collapse of the French leader contributes significantly Worldline -57% after burning 3,7 billion euros in terms of capitalisation. A disaster that follows the abrupt decline of Adyen and British Cab payment -72% in Tuesday's session. 

Worldline burns 3,7 billion in capitation in Paris, Nexi collapses

Could Milan escape the massacre? Of course not. nexi, the Italian champion of digital payments, after leaving just over 20% of the value on the ground this morning, is at -17%. However, a heavy punishment for the stock, already at the bottom of the main Piazza Affari list, after having burned two thirds of the initial capitalization (20,1 billion), marked at the time of its debut in 2022. A brutal setback for a sector, that of digital payments, which appeared (and appears) among the most promising. But, to put it with Bloomberg “Investors are losing patience with booming fintech companies during lockdown, when life was all online. But since then exaggerated valuations and a fall in consumption have caused the fall in prices." 

The fall of Nexi coincides with a phase of great competition and negotiations

This opens a phase of great effervescence for the fate of the sector, favored by the drop in prices. There Nexi's fall coincides with a phase of negotiations for the sale of the majority of the public company, in the sights of CVC funds e Blackstone. But also in a phase of great competition. BCC Pay of FSI is in fact working to become the third main digital payments operator in Italy after NEXI and Worldline. After announcing the agreement with Banca Asti yesterday, it would in fact be in contact with Sparkasse, currently without a digital payments partner, for a new agreement.

This does not mean that, thanks to the increase in the cost of money which favors traditional banks, the Fintech revolution seems destined to slow down. As well as the resurrection of Telecom Italy -4%, the other designated victim of a troubled phase for the sector. At least in Italy where, among other things, Vivendi's hostility to the methods of selling the network continues to weigh heavily. Yet, as confirmed by the robust rebound of Verizon +8% on Wall Street, the worst for telecommunications seems to be behind us. 

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