With more gadgets using mobile technology, the rise of a banking portal for mobile phones seems likely. The question is whether Monitise, a UK company, will be behind that portal.
Since spinning off in June from Morse, a technology consultancy, it has signed partnerships with big banks and telecoms companies in the UK and US. It also claims to have achieved “scalability” – with much of the investment in system development done and the remaining challenge just rolling it out.
Since floating at 22p, Monitise shares have fallen to 12½p, giving it a market capitalisation of about £32m ($63m). So far, 110,000 customers have signed up, below Monitise’s own expectations. The company is not expected to be profitable until 2010 and its revenue model is still evolving.
In the UK, banks pay a fee per-user per-month, while in the US they must also pay a monthly licence fee. There are many competitors. Alastair Lukies, chief executive, thinks 30 companies offer similar technology.
In November, Qualcomm, a wireless technology company, bought Firethorn, a smaller US rival to Monitise, for $210m (£107m). That could mean Monitise is undervalued or overmatched, depending on your point of view.
http://www.ft.com/
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