The recent collaboration between Nexi (BIT:), a leading payment technology company, and Microsoft (NASDAQ:) is set to transform the European digital payment landscape. The partnership will integrate Nexi’s payment services within Microsoft’s Commercial Marketplace, enabling Independent Software Vendors (ISVs) to incorporate omni-channel payment options into their business applications. This strategic move aims to facilitate seamless digital transactions for Small and Medium-sized Enterprises (SMEs) across more than 100 countries.

Starting in Italy and planning to expand into Germany, the initiative focuses on simplifying the integration process for ISVs by providing scalable and secure features like national debit circuits that navigate regulatory complexities. The collaboration also promises to enrich developer resources with Artificial Intelligence (AI) innovations from Microsoft’s framework.

Roberto Catanzaro of Nexi emphasized the importance of accessible digital payments for European economic growth. Vincenzo Esposito from Microsoft Italy expressed optimism about the joint venture’s potential to drive significant innovation and create new opportunities across various industries.

In line with these efforts, Nexi has also partnered with Compass to incorporate their PagoLight Buy Now Pay Later (BNPL) service into SmartPOS terminals offered by partner banks. This move taps into the growing BNPL sector and follows Nexi’s earlier decision in November to divest its eID division to IN Groupe. By doing so, Nexi is refocusing its strategy on providing secure and efficient services, along with industry-specific products that strengthen global identity frameworks and support the digitization of Nordic societies.

The companies are dedicated to pioneering Embedded Finance improvements while undertaking joint market actions that include partner evangelization and technical training programs. These programs are designed to ensure a smooth transition for partners towards digital operations, marking a significant step forward in the digital transformation of financial services in Europe.

InvestingPro Insights

As Nexi and Microsoft continue to collaborate on transforming the European digital payment landscape, it’s crucial to consider some key data and tips from InvestingPro.

For Nexi, two InvestingPro Tips stand out: firstly, the company has high earnings quality, with free cash flow exceeding net income, which suggests a strong financial position. Secondly, analysts predict that the company will be profitable this year, indicating potential growth and a positive outlook for the future.

On the other hand, Microsoft, a prominent player in the Software industry, yields a high return on invested capital and has raised its dividend for 18 consecutive years, according to InvestingPro Tips. This implies a strong track record and a commitment to returning capital to shareholders.

InvestingPro real-time data shows that Microsoft has a market cap of $2800.0B USD and a P/E ratio of 35.84, indicating a high valuation. The company’s revenue as of Q1 2024 stands at $218.31B USD, with a growth of 7.5% over the last twelve months. These figures underline the scale and growth trajectory of Microsoft, which are crucial factors in the partnership with Nexi.

Finally, remember that an InvestingPro subscription, now available at a special Black Friday sale with a discount of up to 55%, provides access to a wealth of additional tips and data for these companies and many more.

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