Telefonica entered into a framework agreement with Monitise to explore potential uses for the cloud platform belonging to the struggling mobile money firm.
The new deal replaces the existing contract between the firms which dates back to July 2013. Telefonica holds a 2.2 per cent stake in Monitise it purchased last November.
The money firm’s largest backers are Banco Santander with 4.9 per cent, Legg Mason (3.5 per cent) and Norges Bank (3.3 per cent).
In a statement, the money firm said the new Telefonica agreement is consistent with its change of strategy to become a cloud-based business.
Monitise’s guidance for FY 2016 remains unchanged following the announcement. Its CEO Elizabeth Buse stepped down last month for “personal reasons” after Monitise posted ugly-looking full-year 2015 figures, as it struggles to make the transition to a new business model.