The mobile channel is becoming an increasingly important battleground for financial services companies as consumers shift more of their banking and shopping activity to smartphones and tablets. A new partnership between Visa and Monitise underscores how major players in digital payments are investing heavily in mobile technology to expand commerce opportunities and improve customer engagement. The deal highlights the growing role mobile devices play in the future of payments, banking, and virtual currency transactions.
From TechCrunch:
Visa believes that by 2020 more than half of all payments made in Europe will be done through mobile devices, so it is continuing to put more investment into how it will remain a central part of those transactions.
In the latest development, mobile money specialist Monitise has announced an extended deal in which Visa Europe will license all of Monitise’s technology in an agreement it says will bring in a minimum of €45 million ($59 million) in the next three years, “with greater revenues as certain user generated thresholds are achieved,” a spokesperson says. Visa, a minority shareholder in the mobile company, is also taking a further investment in Monitise of about £15.6 million ($23.5 million), plus options for more investment.
This agreement is yet another example of mobile’s importance in banking and payments. Firms like Monitise and Visa are leveraging their presence in these spaces to build and extend a larger payments infrastructure. As this market grows, there will likely be more partnerships and agreements in a wide variety of areas as organizations strive to differentiate themselves and provide a superior customer experience.
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