Monitise, a UK-based provider of mobile banking software, has announced plans to expand across the pond by buying a US-based banking app supplier called Clairmail, Information Age reports.
Both companies sell mobile banking apps - which in recent times have become a popular step in the digital evolution of banking - to retail banks. The apps created by the providers, which can be downloaded on smartphones, include ones that offer account management and payments processing services.
Increasing numbers of banking customers are hailing mobile banking apps for their convenience and efficiency when it comes to managing their money, allowing users to do things such as make payments and check their balance around the clock.
Monitise's customers currently include RBS, Lloyds TSB, NatWest, HSBC and payments company Visa. The company said that its acquisition of Clairmail, worth £109 million, would lead to a 'pure-play mobile money company of unprecedented scale in the US, which is expected to be the world’s largest mobile banking and payments market.'
However, Monitise's expansion across the Atlantic isn't entirely new. The company already has a US subsidiary, Monitise Americas, which started as a joint venture with Fidelity National Information Services.
It seems that the appetite for mobile banking is growing - particularly among the younger generation. A poll carried out last year by YouGov found that a quarter of people in the UK who access the internet on their mobiles use mobile banking services: with 30% of 18-24 year olds and 33% of 25-34 year olds using mobile internet to manage their money.