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Deutsche Bank Makes Another Move Into Fintech, Buys Stake In ModoPayments

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Deutsche Bank AG (NYSE: DB) has acquired an equity stake in ModoPayments, LLC, with an aim to further expand its transaction banking franchise. ModoPayments is a payment technology company, and now Deutsche Bank's second fintech investment in four months.

ModoPayments is regarded highly in the digital payment innovation arena. Its current clientele includes big names like Bank of America Corp (NYSE: BAC), Fidelity National Information Servcs Inc (NYSE: FIS), Verifone, Alliance Data Systems Corporation (NYSE: ADS) and Mastercard Inc (NYSE: MA).

The deal will help Deutsche Bank to include various non-bank payment platforms to its existing digital business-to-business and business-to-consumer payments services. Alipay (NASDAQ: BABA), Paypal Holdings Inc (NASDAQ: PYPL), M-Pesa and WeChat are some of the non-bank platforms, where transactions take place through mobile wallets or peer-to-peer networks.

John Gibbons, head of Global Transaction Banking, said of the deal, "Payments are the bloodline of banking. More and more global payments are executed electronically via Fintech and online platforms. Our investment and partnership with Modo will help us to provide our corporate and institutional clients with new digital payment functionalities and accordingly more flexibility in facilitating these transactions. Going forward, we will be able to directly process payments to mobile wallets and app-based payment solutions."

ModoPayments' management is enthusiastic about this deal as it is likely to enable the company to implement its technology on a global level.

Further, the bank's management expects ModoPayments to bring in new options for providing payment and transaction services to its customers. With the growing usage of digital services, this is expected to attract potential customers, who want to make use of such services.

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The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: contributor contributors ModoPaymentsFintech News M&A

 

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