Norwegian financial services group SpareBank 1 has purchased the local assets of mCash, an Oslo-based mobile payments provider that has over 100,000 customers within the Scandinavian country.
Taking control of Norwegian payments
Launched in Norway in 2014, mCash specialises in retail, digital and P2P payments using its suite of virtual solutions. The group is backed by investors Entree Capital and Northzone who ploughed $6.6m into the company in a March 2014 funding round.
The sum of the takeover is currently undisclosed, but SpareBank will have total control over the startup’s Norwegian assets, including 100,000 customers and over 600 merchants who use the technology mCash’s technology to accept cashless payments.
The money that mBank receives from the sale will help fund the group’s international expansion, with COO Anders Blake explaining that the firm is looking to explore new markets.
‘‘We were amongst the first to develop and deploy a full stack mobile payment platform. With very attractive mobile solutions for consumers and businesses SpareBank 1 is securing a strong position,’’ said Blake.
‘‘We will now shift our focus to new markets, and we are talking to multiple financial institutions that are ready to launch their own mobile payments initiatives using our core functionality as a platform,’’ continued the COO.
‘Positioned to meet future digital customer needs’
SpareBank represents the interest of a group of 16 independent Norwegian savings banks and is using the acquisition as an opportunity to cooperate with Norway’s startup community, as well as creating solutions that could turn Norway into a cashless society.
‘‘With this acquisition we strengthen our mobile efforts and are well positioned to meet future digital customer needs,’’ said Jan-Frode Janson, chairman of the SpareBank 1 alliance.
‘‘We do not always need to develop all services itself, but rather cooperate with others or buy solutions that are good at specific areas. We believe that cooperation with innovative new companies are properly renewing the financial sector and meet digitization wave in.’’
SpareBank has given itself till the New Year to improve mCash’s customer experience. Collaborating with local entrepreneurs, the bank will also look to develop the design of mCash’s current solution.
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