Payments firm Monitise puts application programming interfaces in cloud to provide services

Monitise puts its application programming interfaces (APIs) in the cloud for banks and payment firms to use its technology in their services

Financial services software firm Monitise is making its Application Programming Interfaces (APIs) available on a cloud platform so client businesses can use its mobile payments technology in their services.

This is part of the company’s plan to change its business model following its decision not to sell up, but to operate as a service provider to banks, payments firms and other interested businesses.

In January 2015, Monitise announced it could benefit from being part of another business

But following a strategic review, the mobile payments firm said: “The board has concluded that the best way of maximising long-term value for shareholders is to continue as an independent company.” 

The cloud API platform provides Monitise's technology and customers can connect their apps to the company's different features.

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APIs enables pay-per-use model

Customer companies can pick and choose which Monitise features they want to include. They will pay for those services through agreements with Monitise that might include usage-based fees.

This moves away from the model of comprehensive, upfront licence payments or engaging in large development and integration projects. “As first announced in March 2014, Monitise is focusing on transitioning to a subscription-based model and an evolved product architecture which will enable the Group to scale more rapidly,” it said in a statement in February 2015.

Mike Dreyer, chief operating officer at Monitise, said: "Over the course of the next year, we expect to see our cloud-based platform play an increasingly important role in driving our user numbers and revenue growth. The platform has been designed to help us deliver digital products built around consumer needs.”

Cloud delivery offers temporary edge

Andrei Charniauski, analyst at IDC Financial Insights, said: “Offering a cloud-based delivery option is certainly a move in the right direction and customers will appreciate Monitise providing more flexibility with APIs.

"However, this should not distract from the fundamental issue of muted demand for Monitise products, which has so far prevented the company from becoming profitable. With most financial software vendors also launching cloud-based delivery alongside traditional options, this is unlikely to remain a major competitive advantage for much longer.”

But Gareth Lodge, analyst at Celent, said there might be a good opportunity for Monitise to provide the APIs that will help companies meet upcoming legislation demanding that access to payment account information should be opened up to third parties.

“The company’s relationship with banks means it is trusted and it has proven technology,” said Lodge.

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