Mobile money business Monitise has signed a three year deal with Visa Europe to speed up the roll out of mobile payment services.
Monitise said it will make at least €45 million over the course of the partnership, although this could increase if certain targets are met. Visa Europe will also have a warrant to buy 43 million shares in the company at a fixed price of 36.35p, until 4 August 2014. Visa Europe currently has a 7.5% share holding in Monitise.
Steve Chambers, chief information officer at Visa Europe, said: 'Mobile is changing the way we pay and buy. Visa continues to ensure that financial institutions remain at the centre of this important landscape. We are delighted to be deepening our long-standing relationship with Monitise to ensure best-in-class services for Visa Europe members.'
Monitise chief commercial officer Lee Cameron said: 'Payments is about partnerships and Visa is the industry benchmark for trusted payments innovation globally. This agreement underpins our growth expectations and we are honoured to be playing our role as a technology enabler and ecosystem partner in helping Visa Europe deliver new solutions that ensure its members can offer the most compelling, intuitive and robust mobile money services.'
Both companies have been working together since February 2011 to roll out mobile payment services to more than 3,000 member banks and financial insitutions.
Author: Graeme Neill