18th Sep 2014 08:32
LONDON (Alliance News) - Payments giant Visa Inc Thursday said it is mulling over its investment in AIM-listed mobile payments company Monitise PLC, asking JP Morgan Securities PLC to assist as it looks to lessen its dependence on external mobile development resources.
In a statement, Visa said it intends to continue increasing its investment in its own in-house capabilities and, as a result, will be reducing its use of external resources. Under the companies' agreement, Monitise will provide Visa with mobile platform development services through 2016.
Visa invested in Monitise as a 14.4% owner in 2009 but its holding has since been reduced to its current 5.5% stake. Visa said the reduction is consistent with its practice to seed emerging players and, over time, taper that influence as the partner company grows.
"Visa invested in Monitise as an early thought leader with a vision of making mobile banking mainstream and extending that functionality to mobile payments," Bill Sheedy, EVP of corporate strategy, Visa Inc, said in a statement.
"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," Sheedy said.
Monitise was not immediately available for comment.
Monitise shares were Thursday quoted down 22% at 33.19 pence.
Separately, BlackBerry Ltd, PermataBank and Monitise announced the launch of BBM Money, developed by Monitise and managed by PermataBank, for smartphones running on Android, iOS, and BlackBerry platforms.
By Samuel Agini; [email protected]; @samuelagini
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