Tag: monitise

UK mobile payments firm is up for sale

| January 27, 2015

Monitise is for sale, citing changes to business model and a turbulent mobile payments market

Mobile payments and banking firm Monitise has put itself up for sale. The company, which is based in the United Kingdom, is citing changes in its business model for its third revenue warning that it has received in a year. Shares in Monitise have fallen by 20% as doubts begin to emerge concerning the company’s ability to find a buyer. The company has been experiencing some turbulence in the UK market recently, despite the growing adoption of mobile payments.

Firm adopts a subscription-based model that does not seem popular among clients

Monitise made a significant change in its business model recently, moving from a licensing model to a subscription-based structure. The company provides software solutions for mobile devices, allowing its clients to support mobile transactions. Among its clients are the Royal Bank of Scotland and Banco Santander, both of which have begun showing strong interest in the emerging mobile commerce space.

Mobile commerce is growing throughout the United Kingdom

UK Mobile Payments - Firm up for saleMobile payments have been growing throughout the United Kingdom in recent years. Consumers are beginning to rely on their smartphones for more than just basic entertainment and communication. These devices have become shopping platforms, allowing consumers to shop for and purchase products in a convenient manner. As the demand for mobile payment support grows, more banks are showing interest in offering their customers mobile-centric services. Monitise is one of the companies that was able to satisfy this need among banks, but changes in market trends have made it more difficult for the company, and those like it, to remain financially sustainable.

Monitise is expected to miss its revenue growth estimates for this fiscal year

Monitise expects to miss its revenue growth estimates of 25% for the fiscal year ending in June. The company expects to generate between $136 million and $151 million in revenue this year, compared to the $143.7 million it generated in 2014. Monitise stock was the most heavily traded stock on the London Stock Exchange this week.

Visa is evaluating its stake in British mobile payments firm Monitise

| September 22, 2014

Monitise could soon be free from Visa as company evaluates its stake in mobile commerce

Monitise, a British mobile payments firm, received bad news from Visa, one of its primary shareholders, this week. Visa is evaluating its stake in Monitise and may sell off its shares in the coming months. This has sent Monitise’s stock plummeting, but the firm has partnerships with other prominent companies that could mitigate the loss of Visa as a stakeholder. Monitise has managed to garner support from consumers in the United Kingdom that are interested in mobile commerce.

Visa hires JPMorgan Chase to evaluate its options concerning Monitise

Visa is currently “considering its options” regarding its stake in Monitise. In 2009, Visa took a 14.4% stake in the firm. Together, the two companies have managed to promote mobile commerce in the United Kingdom, introducing a variety of services developed by Monitise to Visa customers. As Monitise matured, Visa reduced its stake in the firm to 5.5%. Now, Visa has hired JPMorgan Chase to evaluate its options for the future.

Visa is beginning to focus more heavily on its own mobile commerce initiatives

British Mobile Payments - VisaVisa has been putting more focus on its in-house capabilities, especially where mobile commerce is concerned. The substantial growth of Monitise has lead Visa to believe that the firm is much more capable than it had been in the past, now that it has established a commanding foothold in the UK’s mobile commerce space. As mobile commerce continues to grow more prominent throughout the country, Monitise is expected to garner more support from consumers and retailers.

Apple finds support fro Visa for its ambitious Apple Pay service

Though Visa has been focusing more heavily on its own initiatives recently, the company has shown strong support for Apple Pay. The service is the first mobile payments platform from Apple, and Visa has teamed with the company to make sure its customers can use Apple Pay to purchase products from their mobile devices. Apple is new to the mobile commerce space, so the success of its new service is still uncertain.