Monitise and Visa Europe accelerate Mobile Money

06 Mar 2013

New three-year deal represents minimum revenues to Monitise of 45m Euros

 

Acceleration of Buy Anything mobile services with continued development of Bank Anywhere, Pay Anyone

 

Monitise plc (LSE: MONI, the ”Company”)and Visa Europe are further strengthening their partnership via a new three-year commercial agreement spanning the development and deployment of Mobile Money payments and mobile commerce solutions for Europe’s leading financial institutions.

 

Heads of terms have been signed for the agreement, which covers licence rights to all aspects of Monitise’s mobile technology.

 

The new relationship incorporates minimum revenues to Monitise of 45 million over the first three years with the potential for greater revenues as certain user generated thresholds are achieved. A further announcement will be made in due course to confirm when the Company has entered into the final contractual agreement with Visa Europe (the “Agreement”).

 

At the same time as the Agreement for this extended commercial partnership is entered into, Monitise will grant Visa Europe a warrant to purchase 43m ordinary shares of 1 pence each in the Company (“Ordinary Shares”) at a price of 36.25p per Ordinary Share, representing the closing mid-market price of 4 March 2013.  This warrant will be exercisable from the point at which the Agreement is entered into between Monitise and Visa Europe until 4 August 2014. In addition, the Company will grant Visa Europe a further warrant to purchase an additional 6 million Ordinary Shares at a price of 1 pence per Ordinary Share, being the nominal value.

 

Monitise has been working in partnership with Visa Europe since February 2011 to deploy mobile payments services to its 3,000+ member banks and financial institutions across 36 countries. Visa Europe owns 7.5% of the shares in Monitise via an investment that forms part of its strategy to deliver increased value for financial institutions and consumers through enabling and supporting mobile payments.

 

Steve Chambers, Chief Information Officer at Visa Europe, said: “Mobile is changing the way we pay and buy. Visa continues to ensure that financial institutions remain at the centre of this important landscape. We are delighted to be deepening our long-standing relationship with Monitise to ensure continued best-in-class services for Visa Europe members.”

 

Monitise Chief Commercial Officer Lee Cameron said: “Payments is about partnerships and Visa is the industry benchmark for trusted payments innovation globally.  This agreement underpins our growth expectations and weare honoured to be playing our role as a technology enabler and ecosystem partner in helping Visa Europe deliver new solutions that ensure its members can offer the most compelling, intuitive and robust Mobile Money services.”

 

He added: “Our technology has been designed with one clear purpose: to help consumers bank anywhere, pay anyone and buy anything from their mobile.” 

 

There are 466m Visa accounts in Europe with one in every 6.75 euros of everyday spending being transacted by Visa services. The payments processor predicts that by 2020 more than half of its transactions will be carried out on a mobile device.

 

Notes to Editors

 

Visa Europe and Visa Inc. are separate businesses and Monitise is a strategic partner with both companies. Visa Europe became independent of Visa Inc. in 2007 following a restructuring of Visa Group and subsequent IPO of Visa Inc.  Monitise and Visa Inc. have been working together since 2009.

 

About Monitise

 

Monitise plc (LSE: MONI) is a leading technology and services company that delivers mobile banking, payments, and commerce networks worldwide. Monitise enables financial institutions and other payment companies to defend and extend their market position by protecting their existing customer relationships and transactions while enabling new forms of mobile commerce revenue.

 

Monitise powers bank-grade solutions that are delivered on premise, or via cloud services. The value of payments and transfers initiated via Monitise’s platform technology is more than US$31bn on an annualised basis. Monitise has a global reach and unique set of partners and clients using its completely adaptable Monitise Enterprise Platform. More information is available at www.monitise.com

 

For further information

 

Monitise plc                                                                                                                 Tel: +44(0)203 657 0900

Duncan McIntyre, Chairman

Alastair Lukies, Chief Executive Officer

Lee Cameron, Chief Commercial Officer

Mike Keyworth, Chief Operating Officer

 

Investor Relations

Haya Herbert-Burns                                                                                                     Tel: +44(0)203 657 0366

Haya.herbert-burns@monitise.com

 

Media Relations

Gavin Haycock                                                                                                               Tel: +44(0)203 657 0362

Gavin.haycock@monitise.com

 

Canaccord Genuity                                                                                       

Simon Bridges                                                                                                                Tel: +44(0)20 7523 8000

Cameron Duncan

 

FTI Consulting                                                                                                                Tel: +44(0)20 7831 3113

Charles Palmer

Jon Snowball