Visa Inc. and Monitise PLC plan to form a joint venture to provide mobile financial services in India, the companies announced May 26. They expect the joint-venture deal to close in June.
The joint venture will provide a technology platform to enable financial institutions and mobile-network operators in India to offer a range of mobile-based payment services to consumers, according to the statement. It will combine Visa’s processing capabilities with United Kingdom-based Monitise’s knowledge in developing mobile financial technology for handsets.
The technology platform will support mobile banking, bill payments, mass-transit ticketing and mobile top-up services, according to the statement.
“Creating this joint venture is a crucial step that can help expand the acceptance of digital currency in India and enable the migration of US$700 billion of annual consumer spending from cash to electronic forms of payments,” Elizabeth Buse, Visa group executive, said in the statement.
India is the world’s second largest mobile market behind China with an estimated 584 million mobile-phone subscriptions as of March 31.
Monitise serves more than 200 banks and financial institutions in the UK and United States.
Both parties did not respond to PaymentsSource requests for comment by deadline.
