finmid has partnered with myPOS to offer embedded working capital financing to merchants across Italy, targeting the country's EUR 3 billion SME financing gap.
Germany-based finmid, an embedded finance infrastructure provider, has announced a partnership with payment services provider myPOS to make working capital financing available to more than 90,000 eligible myPOS merchants across Italy. Financing offers are personalised, pre-approved, and based on business performance data, with funds available within 48 hours of acceptance. Repayments are tied to revenue, allowing merchants to repay more in busier periods and less when trading is slower.
finmid provides the full lending infrastructure, including underwriting, compliance, servicing, and capital. The company already supports embedded lending for platforms including Wolt, Glovo, Bolt Food, and Freenow across more than 30 European markets.
Italy's SME financing gap and regulatory context
Italy presents a significant opportunity for embedded lending. The country has one of the largest SME financing gaps in Europe, estimated at EUR 3 billion, alongside one of the most complex regulatory environments for business lending on the continent. Its 4.9 million small businesses have historically relied on traditional bank lending, which finmid characterises as slow and inaccessible.
finmid states that merchants accessing its financing typically see a sales uplift of up to 45%, with an NPS exceeding 80, and 80% returning for additional financing. Platforms using finmid report a 70% reduction in churn. The company has supported more than 150,000 businesses across its European markets to date.
For myPOS, which serves more than 350,000 merchants across 35 countries through in-person, online, and mobile payment solutions, the integration embeds financing directly into the merchant dashboard without requiring merchants to engage with external lenders.
The partnership extends embedded lending into Southern Europe, a region where fintech penetration in SME finance has lagged Northern European markets, partly due to regulatory complexity.
