The EIB’s €70 million bet on Scalapay

Europe’s financial technology landscape is entering a new chapter. The European Investment Bank (EIB), the long-term lending arm of the European Union, has approved a €70 million debt financing package for Scalapay, the Italian buy-now-pay-later (BNPL) company that has become one of Europe’s fastest-growing consumer-finance platforms. The deal, signed in Milan by EIB Vice-President Gelsomina Vigliotti and Scalapay CEO Simone Mancini, marks the first time the EIB directly funds an Italian unicorn, a symbolic milestone for the continent’s ambition to strengthen its digital financial ecosystem.

For a sector where scale, trust and technological performance are everything, the EIB’s backing sends a powerful signal. It places Scalapay—founded in 2019 and already a key player in Europe’s BNPL space—at the center of Europe’s effort to compete globally in payments innovation. And it reinforces the idea that Europe wants its tech champions to grow and stay in Europe, not to seek capital or exits elsewhere.

Why Scalapay and why now

The BNPL model has evolved from a niche e-commerce feature into a mainstream payment method across fashion, lifestyle, travel and home goods. Scalapay positioned itself early in this shift, designing a three- or four-installment, interest-free payment solution that retailers integrate seamlessly into checkout flows. The company now works with more than 12,000 partner brands and serves over 11 million users across Europe.

But the BNPL market is also becoming increasingly competitive and regulated, with new rules on consumer protection and risk management. Scaling such a model requires more than brand adoption—it demands robust technology, advanced credit-risk analytics, regulatory compliance infrastructure and user-experience optimization.

This is precisely where the EIB steps in. According to the agreement, the €70 million investment will expand Scalapay’s product portfolio, enhance its payments architecture and improve the fluidity of user interactions. In other words, it will help the company move from a fast-growing fintech to a long-term, infrastructure-level payments player.

As Vigliotti put it, “This financing will strengthen the European digital payments ecosystem, supporting a company that has grown quickly by focusing on technology, security and service quality.”

Anchoring Europe’s innovation strategy: the TechEU connection

The operation is part of TechEU, the EIB Group’s flagship initiative designed to fuel innovation and reinforce Europe’s technological leadership. TechEU aims to deploy €70 billion between 2025 and 2027 in equity, quasi-equity, loans and guarantees, with the broader goal of mobilizing €250 billion in real-economy investment.

The Scalapay deal specifically uses Scale-Up Debt, a financial instrument tailored for highly innovative companies in pre-IPO growth stages. Unlike equity rounds, Scale-Up Debt does not dilute founders or private investors, making it attractive for companies looking to scale without surrendering ownership.

This also reflects a shift in how Europe wants to support its tech sector. Instead of reactive measures, TechEU provides a structured, multi-year framework aimed at:

• stimulating homegrown technological innovation,

• reinforcing digital sovereignty and competitiveness,

• and helping European startups scale to global relevance.

Vigliotti summarized it clearly: “Our aim is to support the most innovative companies at every stage of their development, from early ideas to market listing.”

InvestEU: the EU’s engine for strategic financing

The financing also benefits from InvestEU, the European Union’s major investment program designed to leverage public and private capital for strategic priorities such as the Green Deal and digital transformation. With a €26.2 billion EU budget guarantee, InvestEU provides risk-sharing to partners like the EIB, enabling larger and more impactful investments.

In practice, InvestEU allows the EIB to support projects like Scalapay with stronger certainty and larger volumes, increasing Europe’s ability to nurture competitive, resilient industries. Under the program’s umbrella, the EIB mobilizes investment for digitalization, innovation, infrastructure and energy security—areas where Europe sees both opportunity and strategic vulnerability.

In 2024 alone, the EIB Group unlocked over €100 billion in new investments for Europe’s energy security and €110 billion for startups and scale-ups. Scalapay’s financing slots neatly into this broader framework.

What Scalapay plans to build with the funds

While the company has not disclosed the full roadmap, the financing is expected to accelerate investments across several strategic areas:

As BNPL becomes a more central part of online and in-store checkout, payment systems must support higher transaction volumes with lower latency and enhanced fraud prevention. Scalapay plans to reinforce its core payment rails, leveraging the EIB’s funding for security, scalability and compliance enhancements. The BNPL model presents opportunities to layer additional financial services—from advanced budgeting tools to richer digital wallets. The company has hinted at expanding its product suite to offer more flexibility and personalization for consumers.

Flag of Italy.

Retailers increasingly expect BNPL providers to deliver not only payment options but also analytics, conversion dashboards and customer-behaviour insights. Investments in this domain can further differentiate Scalapay in a crowded market. The financing supports Scalapay’s ability to reinforce its presence in Italy, Spain, France and other European markets, while exploring new geographies where BNPL penetration remains low but growth potential is high.

For CEO Simone Mancini, the message is clear: “The funding will help us accelerate growth, expand our product range and better support the development of the markets where we operate.”

Why this matters for Europe’s financial ecosystem

The EIB’s backing of a BNPL company may seem like a niche event, but it sits at the intersection of several major trends defining Europe’s economic future.

Payments is one of the most dynamic battlegrounds in fintech. By supporting a European BNPL champion, the EIB reinforces the continent’s ability to build its own digital rails, reducing dependence on non-European players. Historically, many European tech companies reach a certain size only to seek deep funding abroad. By providing non-dilutive growth capital, Europe is signaling its intent to keep promising companies close.

TechEU’s approach—multi-year, large-scale and sector-agnostic—is part of a broader strategy to give Europe the innovation infrastructure needed to compete with China and the U.S. BNPL remains a popular tool for consumers seeking short-term budgeting tools without interest or hidden fees. Strengthening a major player in this segment helps consolidate trust and standardization.

With more than 900 high-impact projects financed in 2024, the EIB has become a central pillar of Europe’s competitiveness. Supporting Scalapay fits within its priorities of digitalization, innovation and market cohesion.

A milestone for Italy’s tech sector

While the broader story is European, the Scalapay financing deal carries particular significance for Italy. The country’s tech ecosystem has grown steadily in the past decade but still lags behind northern European markets in scale-up funding and IPO volume. The EIB’s decision to directly fund an Italian unicorn sends a message: Italy is capable of producing high-growth, innovation-driven companies worth backing at the highest institutional level.

The precedent matters. Strong institutional support can create momentum, encouraging private investors, founders and public bodies to push further.

A step toward a more innovative Europe

As Europe navigates geopolitical uncertainty, supply-chain pressures, and global technological competition, investments like this reflect the continent’s ambition to build economic resilience through innovation. Scalapay’s growth journey is only one example of a broader shift: the EU is moving from fragmented support schemes to large-scale, unified investment strategies.

By betting €70 million on a BNPL pioneer, the EIB is placing a strategic wager on the future of payments—and on Europe’s capacity to develop and retain world-class tech champions. It is a move that signals ambition, confidence and a renewed industrial vision for the digital age.

Frequently Asked Questions

What is the main purpose of the EIB’s €70 million investment in Scalapay?

The investment aims to accelerate Scalapay’s technological development, expand its payment infrastructure and strengthen its position as a leading European BNPL provider.

How does this financing fit into TechEU?

The deal forms part of TechEU’s broader plan to invest €70 billion between 2025 and 2027 to boost European innovation and mobilize €250 billion in real-economy investment.

Will Scalapay’s founders lose ownership through this financing?

No. The EIB is providing Scale-Up Debt, a non-dilutive financial instrument that allows companies to scale without giving up equity.

How many users and merchants currently use Scalapay?

Scalapay works with over 12,000 brands and more than 11 million consumers across Europe.

Why is this investment significant for Europe?

It reinforces Europe’s digital payments ecosystem, supports homegrown fintech innovation and signals Europe’s intention to retain and scale its own technology champions.