Visa makes two moves into mobile banking

Visa announced two moves into mobile banking, buying a company that makes software for mobile banking users in Africa, Asia and the Middle East, and striking an agreement with another company that works with bank customers.

Visa said it would pay $110 million in cash for privately held Fundamo, based in Cape Town, South Africa. Fundamo now has more than 5 million subscribers, and Visa said it has the potential to reach more than 180 million. Visa expects to complete the deal June 9 and said it will slightly hurt its earnings for the fiscal year that ends Sept. 30.

Visa also announced an agreement with mobile banking software maker Monitise. Visa said the deal will expand delivery of mobile financial services to Visa account holders through banks. Monitise software will let Visa make existing accounts available on mobile phones. It also allows Visa account holders outside the U.S. to make electronic payments, buy phone minutes and obtain transit tickets. Visa said it also plans to use Monitise to make it possible for U.S. financial institution customers to expand mobile banking to customers with debit and prepaid cards.