MasterCard buys into eServGlobal's international remittance hub

LONDON (ShareCast) - Mobile money specialist eServGlobal has partnered with Mastercard and telecoms wholesaler BICS to create a joint venture that will allow end customers to transfer money internationally via mobile money accounts and other outlets.

AIM-listed eServGlobal's HomeSend is a technological hub employed by mobile network operators and financial institutions to allow international remittance that will now be connected to the 24,000 financial institutions on the MasterCard network and be promoted by the credit card giant.

MasterCard will pay €9m in cash and €1.5m reduced cash expenses for 55% of the joint venture, with eServGlobal owning 35% and BICS 10%.

Based on World Bank estimates, remittances to developing countries will reach around $515bn by 2015.

MasterCard's Chief Emerging Payments Officer Ed McLaughlin said: "HomeSend will provide an important platform to deliver improved remittance services, and bring person-to-person transfer capabilities to more financially underserved consumers around the globe."

Shares in eServGlobal were up 17.3% to 45p by 11:05 on Thursday.

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