Visa Acquires Mobile Platform Provider
June 13, 2011
Visa Inc. last week said it will acquire Fundamo, a South African platform provider of mobile financial services for mobile network operators and financial institutions in developing economies, for $110 million in cash. The San Francisco-based card network said Fundamo’s platform enables mobile delivery of person-to-person payment, airtime top-up, bill payment and branchless banking services. The combined Visa Fundamo platform will add enhanced functionality and new services to existing mobile financial services subscribers across Africa, Asia and Latin America. “Combining Visa’s unparalleled network scale, global reach, extensive product suite and established financial institution relationships with Fundamo’s expertise in delivering mobile financial services in developing economies presents us with an important long-term opportunity to grow our business and drive financial inclusion in key geographic markets,” said Joseph W. Saunders, chairman and CEO of Visa Inc. Cape Town, South Africa-based Fundamo has more than 50 active mobile financial services deployments across more than 40 countries totaling more than five million registered subscribers. The acquisition is expected to be slightly dilutive to Visa’s earnings in its fiscal year 2011.