Follows Multi-Year Global Alliance with Monitise for Mobile Money
Platform Development Services
FOSTER CITY, Calif.--(BUSINESS WIRE)--
Longstanding partners in the mobile sector Visa Inc. (NYSE:V) and
Monitise plc entered into an alliance agreement in 2009. At the same
time, Visa began investing in Monitise. Given the maturation of Monitise
as a company, Visa is considering its options with respect to the
investment and has engaged J.P. Morgan Securities Plc to assist. Visa
will also be lessening its dependence on external mobile development
resources.
In 2009, in conjunction with its commercial partnership, Visa invested
in Monitise as a 14.4% owner of the company in order to provide capital
support to a leader in the evolution of the mobile payments sector. Over
time, Visa’s holdings have been reduced to its current 5.5% stake in the
company. This reduction in ownership and associated influence is
consistent with Visa’s investment practice to seed emerging players and,
over time, taper that influence as the partner company grows.
Under their agreement, Monitise will provide Visa with mobile platform
development services through 2016. As both Visa and the payments
industry evolve at a rapid pace, Visa intends to continue increasing its
investment in its own in-house capabilities and, as a result, reducing
its use of external resources.
“Visa has benefited substantially from our relationship with and
financial investment in Monitise,” said Bill Sheedy, EVP of Corporate
Strategy, Visa Inc. “Visa invested in Monitise as an early thought
leader with a vision of making mobile banking mainstream and extending
that functionality to mobile payments. Over the past 5 years, Monitise
has successfully demonstrated its leadership in the sector underscored
by the company’s marquee clients, multiple network partnerships and
recent agreement with IBM. Consistent with Visa’s increased investment
in our in-house capabilities, and the substantial growth in Monitise,
Visa is considering its options with regard to its Monitise stake.”
About Visa Inc.
Visa Inc. (NYSE: V) is a global payments technology company
that connects consumers, businesses, financial institutions, and
governments in more than 200 countries and territories to fast, secure
and reliable electronic payments. We operate one of the world's most
advanced processing networks — VisaNet — that is capable of handling
more than 56,000 transaction messages a second, with fraud protection
for consumers and assured payment for merchants. Visa is not a bank and
does not issue cards, extend credit or set rates and fees for consumers.
Visa's innovations, however, enable its financial institution customers
to offer consumers more choices: pay now with debit, pay ahead of time
with prepaid or pay later with credit products. For more information,
visit usa.visa.com/about-visa,
visacorporate.tumblr.com
and @VisaNews.
J.P. Morgan Securities plc ("J.P. Morgan"), which is authorised by the
Prudential Regulatory Authority and regulated by the Financial Conduct
Authority and the Prudential Regulatory Authority, is acting exclusively
as financial adviser to Visa Inc. ("Visa") only and no one else in
relation to the assessment by Visa of its stake in Monitise plc and will
not regard any other person as a client in relation to such matter and
will not be responsible to anyone other than Visa for providing the
protections afforded to its clients or for providing advice in relation
to such matter. This does not exclude any responsibilities which J.P.
Morgan may have under the UK Financial Services and Markets Act 2000 or
the regulatory regime established thereunder.
Source: Visa Inc.