SAN RAFAEL, CA--(Marketwire - Mar 7, 2013) - Monitise plc (LSE: MONI) (the "Company") and Visa Europe are further strengthening their partnership with a new three-year commercial agreement spanning the development and deployment of Mobile Money payments and mobile commerce solutions for Europe's leading financial institutions.
Heads of terms have been signed for the agreement, which covers licence rights to all aspects of Monitise's mobile technology.
The new relationship incorporates minimum revenues to Monitise of EUR 45 million over the first three years with the potential for greater revenues as certain user generated thresholds are achieved. A further announcement will be made when the Company has entered into the final contractual agreement with Visa Europe (the "Agreement").
At the same time the Agreement for this extended commercial partnership is entered into, Monitise will grant Visa Europe a warrant to purchase 43 million ordinary shares of one pence each in the Company ("Ordinary Shares") at a price of 36.25p per Ordinary Share, representing the closing mid-market price of March 4, 2013. This warrant will be exercisable from the point at which the Agreement is entered into between Monitise and Visa Europe until August 4, 2014. In addition, the Company will grant Visa Europe a further warrant to purchase an additional six million Ordinary Shares at a price of one pence per Ordinary Share, being the nominal value.
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. Visa Europe owns 7.5 percent 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.
Steve Chambers, Chief Information Officer at Visa Europe, said: "Mobile is changing the way we pay and buy. Visa continues to ensure that financial institutions remain at the center 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 honored 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 device."
There are 466 million Visa accounts in Europe with one in every 6.75 euros of everyday spending being transacted by Visa services. The payments processor predicts that by 2020, more than half of its transactions will be carried out on a mobile device.
Notes to Editors
Visa Europe and Visa Inc. are separate businesses and Monitise is a strategic partner with both companies. Visa Europe became independent of Visa Inc. in 2007 following a restructuring of Visa Group and subsequent IPO of Visa Inc. Monitise and Visa Inc. have been working together since 2009.
Monitise plc (LSE: MONI) is a leading technology and services company that delivers mobile banking, payments, and commerce networks worldwide. Monitise enables financial institutions and other payment companies to defend and extend their market position by protecting their existing customer relationships and transactions while enabling new forms of mobile commerce revenue.
Monitise powers bank-grade solutions that are delivered on premise, or via cloud services. The value of payments and transfers initiated via Monitise's platform technology is more than US$31bn on an annualised basis. Monitise has a global reach and unique set of partners and clients using its completely adaptable Monitise Enterprise Platform. More information is available at www.monitise.com