Visa this morning announced that it has agreed to acquire Fundamo, a specialist mobile financial services provider to network operators and financial institutions in developing economies, for $110 million in cash.
In a separate announcement, the giant payments technology company said it has entered into a new, long-term commercial agreement with Monitise, a provider of mobile money solutions for financial institutions in more developed regions.
Here’s how the duo of agreements was pitched:
The combination of acquiring Fundamo and expanding the relationship with Monitise will enable Visa to deliver best-in-class mobile financial services and payments capabilities to consumers across the full spectrum of uses, geographies and mobile environments from basic services on simple handsets to more advanced services for smart phone owners.
Fundamo’s platform enables the delivery of mobile financial services to unbanked and under-banked consumers around the world, including person-to-person payments, airtime top-up, bill payment and branchless banking services.
The combined Visa Fundamo platform will add enhanced functionality and new services to existing mobile financial services subscribers for globally accepted payments solutions.
Privately-held, Cape Town, South Africa-based Fundamo says it boasts more than 50 active mobile financial services deployments across more than 40 countries, including 27 countries in Africa, Asia and the Middle East.
Fundamo’s deployments currently have a base of more than five million registered subscribers and the potential to reach more than 180 million consumers with mobile financial services.
Fundamo CEO Hannes van Rensburg and the executive team will continue to manage current and future Fundamo implementations as members of Visa’s mobile product organization.
Monitise and Visa, meanwhile, say they will debut a mobile banking solution in the U.S. for clients of Visa DPS, the company’s debit and prepaid processing platform.
Visa Inc. operates the world’s largest retail electronic payments network and is one of the most recognized global financial services brands. Visa facilitates global commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses and government entities. We offer a range of branded payment product platforms, which our financial institution clients use to deliver credit, debit, prepaid and commercial programs to their customers. Visa’s global network, VisaNet, delivers value-added processing services, including fraud and risk...
Fundamo (Proprietary) Limited provides mobile financial solutions for banks, financial organizations, and mobile network operators in South Africa and internationally. It offers Fundamo Enterprise Edition, a mobile financial services enterprise platform; Fundamo Mobile Wallet that provides transformational mobile financial services; and Fundamo Mobile Banking that enable banks and financial institutions to provide mobile banking as an electronic channel to access existing accounts. Fundamo (Proprietary) Limited also provides Fundamo Mobile Remittance connecters that offer consumer remittance options for the Fundamo...
Monitise plc (LSE: MONI.L) is a global leader in Mobile Money solutions, with the proven technology and expertise to enable financial institutions and other service providers to offer a wide range of mobile banking and payments services to their customers in both developed and developing territories. The British company has a global reach. As well as partnerships with most UK high street banks, Monitise provides services to over 240 financial institutions in the United States and has a global partnership...