Visa has engaged J.P. Morgan Securities as it considers its options regarding the card network's investment in Monitise.
Under an existing agreement, Monitise will provide Visa with mobile platform development services through 2016. Visa took a 14.4% stake in Monitise in 2009 to provide capital support. Visa has reduced that investment over time and currently owns 5.5% of Monitise. Visa intends to increase investment in internal development, and will reduce its use of external resources, the company said in a Sept. 18 press release.
The reduction in Visa's stake in Monitise is also consistent with Visa's investment practice to invest in "emerging players" and taper its influence as the partner company grows.
"Visa has benefited substantially from our relationship with and financial investment in Monitise," said Bill Sheedy, executive vice president of corporate strategy for Visa, in a press release.
Visa invested in Monitise as an early thought leader with a vision of making mobile banking mainstream and extending that functionality to mobile payments, Sheedy said in the release. "Over the past five years, Monitise has successfully demonstrated its leadership in the sector underscored by the company's marquee clients, multiple network partnerships and recent agreement with IBM," he said.
Visa and Monitise did not immediately return requests for comment. Monitise also has a development partnership with MasterCard.