Visa have been strengthening their mobile money offerings as they foresee the market growing to an exponential rate in the near future. To ensure they remain in the centre of everything mobile money related, Visa have extended their partnership with Monitise in Europe.
Having already worked together since February 2011, the new partnership adds three years to the contract and shall utilise the growth of Mobile Money Payments during that time.
Monitise aim to hit revenues of â‚¬48 million, but plan to reach beyond that as "certain user generated thresholds are achieved."
Visa have also invested in Monitise by purchasing 43m ordinary shares – valued at around Â£15.6 million ($23.5 million) – along with the option to buy even more at a later date. Visa already own 7.5 per cent of the company.
"Mobile is changing the way we pay and buy," said Steve Chambers, Visa Europe's chief information officer. "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 continued best-in-class services for Visa Europe members."
Monitise chief commercial officer, Lee Cameron added: "Payments is about partnerships and Visa is the industry benchmark for trusted payments innovation globally.
"This agreement underpins our growth expectations and weare [sic] 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."
"Our technology has been designed with one clear purpose: to help consumers bank anywhere, pay anyone and buy anything from their mobile."
Monitise's previous partnership with Visa has allowed them to roll out mobile payment services to its 3,000+ member banks and financial institutions across 36 countries.
By 2020, Visa estimate that more than half of its transactions will be carried out upon mobile devices – hence their eagerness to embrace the medium sooner rather than later.
Do you think that Visa were right to drop such a huge amount down on an extension deal for European distribution of mobile money payment services with Monitise?
Is the future of mobile payments really going to become the de facto method of payment?
Let us know by commenting below.
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