Visa mulls sale of remaining Monitise stake

Visa mulls sale of remaining Monitise stake

18 SEP 2014

Visa is “considering its options” with regard to the 5.5 per cent stake it currently holds in Monitise, the UK mobile money vendor.

The credit card giant initially took a 14.4 per cent stake in Monitise in 2009, as part of a wider strategic agreement but has gradually sold down its stake.

Visa said it is lessening its dependence on external mobile development, in favour of building up its in-house capabilities.

“This reduction in ownership and associated influence is consistent with Visa’s investment practices to seed emerging players and, over time, taper that influence as the partner company grows,” said Visa in a statement, giving another reason why its interest has cooled over the past four years.

Under their existing agreement, Monitise will provide Visa with mobile development services until the end of 2016.

The credit card giant has engaged JP Morgan to advise on what to do with the stake.

Monitise this week reported 2014 revenue that saw it only just squeeze home on revised targets.

The company also has a growing relationship with IBM. In July it announced a global alliance with the US giant which in turn built on an agreement from late 2013.

Author

Richard Handford

Richard is the editor of Mobile World Live’s money channel and a contributor to the daily news service. He is an experienced technology and business journalist who previously worked as a freelancer for many publications over the last decade including...

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