Monitise (AIM: MONI) has tapped into the world’s second largest mobile market after forming a 50/50 joint venture with retail electronic payments network Visa (NYSE: V) to offer a range of mobile financial services to Indian consumers.
The JV will provide a technology platform for Indian-operating financial institutions and mobile network operators to accelerate the delivery of mobile financial services such as banking, bill payments, ticketing services and mobile top-ups. The new company will combine Visa's expertise in enabling secure, globally interoperable financial transactions with Monitise's know-how in developing mobile financial networks and technology for a broad range of handsets.
India had an estimated 584 million mobile phone subscriptions at 31 March 2010.
Visa stated that the JV will expand the acceptance of digital currency in India and enable the migration of US$700 billion of annual consumer spending from cash to electronic form of payments.
“This exciting extension of our successful partnership with Visa will enable providers of financial services to have a single secure and convenient link to offer a wide range of services via a mobile. India's mobile market offers tremendous growth opportunities for this joint venture and for our customers,” said chief executive of Monitise Alastair Lukies.
Shares in Monitise added 6.6% on the news.