Visa Europe has extended its existing relationship with Monitise, the mobile money provider which expects to earn a minimum of EUR45 million from the new, three-year commercial agreement.
The agreement will enable Visa to use Monitise’s technology for mobile payments and m-commerce services for its 3,000-plus member banks and financial institutions across Europe.
Heads of terms have been signed ahead of a final contract.
The two companies have already been working together since the start of 2011 and Visa Europe has a 7.5 per cent stake in the UK firm.
Monitise says its final revenues from the deal could exceed EUR45 million depending on whether certain user generated thresholds are reached.
“Mobile is changing the way we pay and buy,” said Steve Chambers (pictured), Visa Europe’s chief information officer. “Visa continues to ensure that financial institutions remain at the centre of this important landscape,” he said.
At the same time, Monitise will grant Visa Europe a warrant for the purchase of 43 million of its ordinary shares of one pence each in the company at a price of 36 pence per share, representing the closing mid-market price on 4 March, 2013.
This is exercisable from the point at which the partners finalise their commercial agreement until 4 August 2014. In addition, Monitise will grant Visa Europe a further warrant to buy six million ordinary shares at a price of one pence per share, representing a nominal value.