FIS buys remaining stake in mFoundry for $120 million

FIS buys remaining stake in mFoundry for $120 million

Summary: Thus begins consolidation in the growing mobile payments and banking sector.

SHARE:
0
mfoundry-tablet-phone-med

 

It was only a matter of time before the biggest players in financial services would scoop up one or more startup companies pushing mobile payments technologies.

FIS -- that's short for Fidelity National Information Services -- is not a name you ought to be familiar with. But its technology you've no doubt used before. The Jacksonville, Fla.-based company is the world's largest provider of banking and payments technology, and is among a select few companies responsible for core banking functions around the world.

If your bank makes transactions with another in a nework, FIS or its peers are there to help it along.

FIS on Thursday announced that it would acquire the remaining 78 percent interest in mFoundry, the nine-year-old mobile payments company based in Larkspur, Calif., for $120 million in cash.

The plan is simple: FIS wants an even larger footprint in mobile banking, a rapidly growing channel for money exchange. With 850 customers -- Bank of America and PNC Bank among the largely North American group -- mFoundry should help in this regard. 

Banking isn't the only use case mFoundry's software-as-a-service technology serves, though it's a key one. The company also addresses mobile retail (and the loyalty programs that go with it) and various other services, from basic bill paying to gift card-giving to providing insurance quotes or credit scores. It's quite a bit of data; scaled to FIS' magnitude, it's a tremendous database for learning and leveraging how people interact with financial data.

In October, mFoundry took the wraps off the latest generation of its mobile banking platform, Fin.X; at the time, it said it can grow per-user revenue up to 40 percent and provides up to $100 of incremental per-user revenue each year.

With mobile banking usage predicted to triple in the next five years -- almost half of U.S. bank account holders will use mobile banking by 2017, Forrester predicts -- there is a lot of potential hidden in people's pockets. FIS hopes it can get ahead.

Topics: Mobility, Banking, Start-Ups

Andrew Nusca

About Andrew Nusca

Andrew Nusca is a former writer-editor for ZDNet and contributor to CNET. During his tenure, he was the editor of SmartPlanet, ZDNet's sister site about innovation.

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

0 comments
Log in or register to start the discussion