Monitise signs 8m deal with Visa International

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ES in mobile banking and payments service provider Monitise lifted by 28 per cent to 6.75p yesterday, after it said that it had signed a five-year strategic agreement with Visa International worth $13m (&pound;7.9m).<br /><br />Monitise said Visa International, the world&rsquo;s largest retail electronic payments network, would also subscribe to a rights issue of 73.2m new shares to raise &pound;5.1m and give it 14.4 per cent of the company.<br /><br />&ldquo;Today&rsquo;s announcement provides a major boost to Monitise&rsquo;s short-term revenue visibility and long-term strategic position,&rdquo; house broker Investec said in a note.<br /><br />Visa will pay Monitise to help it develop technology to provide SMS alerts and secure payment mechanisms for holders of Visa&rsquo;s cards worldwide. Shareholders UBS Global Asset Management and Capital Group will also participate in the capital hike, keeping their stakes at 12.9 per cent and 5.8 per cent respectively.