Monitise has had a significant confidence boost after Visa reduced its stake in the mobile payments company. Santander, Telefónica and MasterCard have agreed to invest a combined £49.2 million to accelerate the roll-out of Monitise’s platform.
The news will come to a relief to Monetise execs who saw the company’s share price slump after Visa revealed plans in September to undertake an assessment of its five per cent stake. Since then, Visa’s stake has slipped below the five per cent mark.
Santander, Telefónica and MasterCard will subscribe for 161.1 million new Monitise shares, with 108.2 going to the Spanish banking group Santander along with a 5.1 per cent stake. Telefónica will take on 42.6 million new shares, giving the telecommunications company a 2.0 per cent stake, and MasterCard will receive 10.5 million new shares, taking its total to hold 32.7 million shares in the company, a 1.5 per cent stake.
Monitise said it is in talks with the three companies to garner support for the worldwide rollout of its platform. The company will also be allowed access to IBM’s cognitive computing engine, Watson, to support of its new technology platform.
“The Mobile Money industry is now a global phenomenon,” said Monitise co-CEO Alastair Lukies. “In developed markets it is fundamentally changing the way we bank, pay and buy. In emerging markets it is the foundation of new economic systems.”
“There are two clear and distinct approaches appearing in this industry: disruptors looking for control and collaborators working together to share in a very big and sustainable opportunity. With our partners, we are delighted to be playing our role as an enabler to the Mobile Money collaborators.”
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