Visa buys up mobile payments company

Summary:Visa is continuing to gain ground in the mobile payments market with the acquisition of Fundamo, a service that is already prevalent in at least 40 developing markets.

in brief Visa is continuing to gain ground in the mobile payments market with the acquisition of Fundamo, a service that is already prevalent in at least 40 developing markets.

Basically, the merger brings together Fundamo's mobile financial services platform for customers with little to no access to a bank account with Visa's global payments network, VisaNet. The gain for Fundamo users would be a higher level of security when making mobile payments, and Visa gets a bigger consumer base abroad.

Additionally, Visa reaffirmed an agreement with Monitise, which offers new services including mobile payments, person-to-person payments and mobile transaction alerts to Visa account holders on mobile phone.

Visa has already announced plans for a near-field communication-enabled digital wallet service for North America, set to launch this spring. However, it already looks like it's behind in the game, considering that MasterCard garnered attention for its involvement on Google Wallet. Nevertheless, if Visa gains control of mobile payments abroad (especially in developing countries where these services are becoming the norm), then they could end up with the worldwide lead.

Via ZDNet US

Topics: Mobility, Legal

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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