21 February 2018
visit www.ebaday.com

MasterCard joins £109m Monitise share-placing

25 March 2014  |  7969 views  |  0 Man holding Tablet computer

Monitise has raised around £109 million in a share-placing which sees MasterCard take a minority stake in the mobile money firm.

MasterCard was joined by institutional investors in the over-subscribed placing of more than 160 million new ordinary shares at 68 pence a piece. Visa is already an investor in Monitise.

The two firms have also entered into a commercial agreement, with Ed McLaughlin, chief emerging payments officer, MasterCard, saying: "Our partnership with Monitise builds upon a shared commitment to improve the mobile shopping experience today and into the future."

The new funds will be used to help Monitise overhaul its business model, ditching big upfront license fees in favour of a subscription-based system designed to cut costs for banks and boost its own long-term annuities. This, the firm hopes, will help it rapidly build its base of registered users from around 28 million to 200 million over the next four years.

Alastair Lukies, CEO, Monitise, says: "At a pivotal time in the Monitise journey, the Group is now embarking on a new chapter in Mobile Money innovation as it accelerates its move to a subscription-based business model. By adopting this approach, the Group is looking to ensure that its secure platform technology is accessible to the widest possible number of people."

However, Monitise admits that the switch to a subscription model is likely to see a near-term slowdown in revenue growth. It has therefore cut its expected full year growth guidance from 50% to 40% and warned of higher losses in the second half of 2014. The firm now expects to be Ebitda profitable in 2016, a year later than the current sell-side analyst consensus.

Shares in Monitise were up 2.88 pence, or 4.18%, to 71.62 pence, in morning trading.
KeywordsFINDEX

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Monitise buys Turkish mobile money firm Pozitron Yazilim

Monitise buys Turkish mobile money firm Pozitron Yazilim

03 February 2014  |  6668 views  |  0 comments | 5 tweets | 4 linkedin
Monitise buys out Asia Pacific JV partner

Monitise buys out Asia Pacific JV partner

17 October 2013  |  4678 views  |  0 comments
Monitise revenues soar but losses widen

Monitise revenues soar but losses widen

05 September 2013  |  7489 views  |  0 comments | 1 tweets
Monitise revenues soar as profitability lags

Monitise revenues soar as profitability lags

23 July 2013  |  5523 views  |  1 comments | 4 tweets | 3 linkedin
Visa/Monitise joint venture in India signs up Icici Bank

Visa/Monitise joint venture in India signs up Icici Bank

22 July 2013  |  7062 views  |  0 comments | 4 tweets | 2 linkedin
Monitise confirms placing, acquisitions and delay to break even

Monitise confirms placing, acquisitions and delay to break even

04 December 2012  |  7332 views  |  0 comments | 2 tweets
Monitise in talks to raise £100m

Monitise in talks to raise £100m

29 November 2012  |  7463 views  |  1 comments | 5 tweets | 3 linkedin
Monitise FY losses widen despite revenues doubling

Monitise FY losses widen despite revenues doubling

04 September 2012  |  5626 views  |  0 comments
Monitise agrees Clairmail acquisition

Monitise agrees Clairmail acquisition

26 March 2012  |  8906 views  |  0 comments
Visa Europe invests £24.7m in Monitise

Visa Europe invests £24.7m in Monitise

31 October 2011  |  12300 views  |  0 comments
Monitise to raise £32m; extends Visa deal

Monitise to raise £32m; extends Visa deal

13 July 2010  |  11069 views  |  0 comments
Visa signs $13 million deal and takes minority stake in Monitise

Visa signs $13 million deal and takes minority stake in Monitise

30 June 2009  |  11972 views  |  1 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.swift.com/your-needs/instant-paymentsvisit www.nextgenbanking.co.ukVisit https://www.capgemini.com

Top topics

Most viewed Most shared
ABN Amro moves escrow accounts to the blockchainABN Amro moves escrow accounts to the bloc...
10111 views comments | 15 tweets | 13 linkedin
ECB launches staunch defence of cashECB launches staunch defence of cash
9711 views 10 comments | 22 tweets | 26 linkedin
Coinbase and Visa at loggerheads over erroneous charges on customer crypto accountsCoinbase and Visa at loggerheads over erro...
8474 views comments | 13 tweets | 12 linkedin
BBVA-backed digital banking startup targets gig economy workersBBVA-backed digital banking startup target...
7145 views comments | 8 tweets | 12 linkedin
hands typing furiouslyMaking Customer Experience Your Business
6850 views 0 | 7 tweets | 5 linkedin

Featured job

Find your next job