New three year deal represents minimum revenues to Monitise of Euro 45 million
Monitise 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 major financial institutions.
Terms have been signed for the agreement, which covers licence rights to all aspects of Monitise's mobile technology, while Monitise is also making additional shares in the company available to Visa to purchase.
The new relationship incorporates minimum revenues to Monitise of Euro 45 million over the first three years with the potential for greater revenues as certain user generated thresholds are achieved.
Visa Europe already 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.
At the same time as the agreement for this extended commercial partnership is entered into, Monitise is allowing Visa Europe a warrant to purchase 43 million ordinary shares of 1 pence each in the company at a price of 36.25p per ordinary share, representing the closing mid market price of 4 March 2013. In addition, Monitise is offering Visa Europe a further warrant to purchase an additional 6 million Ordinary Shares at a price of 1 pence each.
Monitise has been working in partnership with Visa Europe since February 2011 to deploy mobile payments services to its more than 3,000 member banks and financial institutions across 36 countries, and has been working with Visa Inc. since 2009.
Steve Chambers, CIO 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 we are 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.'