Swiss BNPL startup HeidiPay has closed a new funding round led by Italian banking group Mediobanca’s consumer credit arm Compass. The amount, which comprised equity and debt financing, was not disclosed.

The funding builds on the companies’ existing partnership in Italy in which HeidiPay provides Compass’ ecommerce platform with buy now pay later (BNPL) features under the brand PagoLight.

Under the partnership, Compass retains full control of the feature’s risk decisioning, funding and post-sale operations, while HeidiPay provides its technology stack.

HeidiPay’s BNPL solution enables merchants in Italy and Switzerland to offer monthy instalment terms of up to 12 months and 24 months respectively, with more countries in the works.

Founded in 2021, HeidiPay claims to have onboarded 300 merchant partners to date. The funding will help scale its existing operations and access credit lines to support the requirements of large merchants.

Matteo Bozzo

“In less than four months, we were able to launch with Compass a market leading BNPL offering in Italy, and we continue to work together to bring new innovations to the market in record time,”

said Matteo Bozzo, Co-Founder and CEO of HeidiPay.