25 August 2016
Find out more

MasterCard joins £109m Monitise share-placing

25 March 2014  |  7382 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  |  5996 views  |  0 comments | 5 tweets | 4 linkedin
Monitise buys out Asia Pacific JV partner

Monitise buys out Asia Pacific JV partner

17 October 2013  |  4140 views  |  0 comments
Monitise revenues soar but losses widen

Monitise revenues soar but losses widen

05 September 2013  |  6533 views  |  0 comments | 1 tweets
Monitise revenues soar as profitability lags

Monitise revenues soar as profitability lags

23 July 2013  |  4765 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  |  6551 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  |  6868 views  |  0 comments | 2 tweets
Monitise in talks to raise £100m

Monitise in talks to raise £100m

29 November 2012  |  7001 views  |  1 comments | 5 tweets | 3 linkedin
Monitise FY losses widen despite revenues doubling

Monitise FY losses widen despite revenues doubling

04 September 2012  |  5255 views  |  0 comments
Monitise agrees Clairmail acquisition

Monitise agrees Clairmail acquisition

26 March 2012  |  7590 views  |  0 comments
Visa Europe invests £24.7m in Monitise

Visa Europe invests £24.7m in Monitise

31 October 2011  |  11451 views  |  0 comments
Monitise to raise £32m; extends Visa deal

Monitise to raise £32m; extends Visa deal

13 July 2010  |  10520 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  |  11395 views  |  1 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit VocaLink.comVisit equens.comVisit capgemini.com

Top topics

Most viewed Most shared
hands typing furiouslyBlockchain: what to expect for 2017?
8184 views 0 | 54 tweets | 46 linkedin
hands typing furiouslyBig Data's Three Big Trends in 2016
6965 views 5 | 22 tweets | 13 linkedin
hands typing furiouslyHow Banks Are Losing Millions by Ignoring...
6419 views 9 | 22 tweets | 8 linkedin
Nordea looking for AI and blockchain breakthroughsNordea looking for AI and blockchain break...
6117 views comments | 17 tweets | 19 linkedin

Featured job

Find your next job