Visa Buys Fundamo for $110m
Fundamo's platform provides mobile financial services to unbanked and under-banked consumers including person-to-person payment, airtime top-up, bill payment and branchless banking services.
The combined Visa Fundamo platform will add enhanced functionality and new services to existing mobile financial services subscribers across Africa, Asia and Latin America for safe, reliable and globally accepted payments solutions.
The platform will expand the utility of closed-loop systems, enable them to be interoperable, make financial services available to more consumers and offer merchants access to new customers.
Joseph Saunders, chairman and CEO of Visa, said: â€œCombining Visa's unparalleled network scale, global reach, extensive product suite and established financial institution relationships with Fundamo's expertise in delivering mobile financial services in developing economies presents us with an important long-term opportunity to grow our business and drive financial inclusion in key geographic markets.â€
Visa has signed a new, long-term commercial agreement with Monitise, a provider of mobile money solutions for financial institutions.
The combination of acquiring Fundamo and expanding the relationship with Monitise will enable Visa to deliver mobile financial services and payments capabilities to consumers across the full spectrum of uses, geographies and mobile environments from basic services on simple handsets to more advanced services for smart phone owners.
Will the acquisition benefit Visa?
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