Deutsche Bank takes equity stake in Modo Payments
Payments technology company Modo Payments has received an equity investment from Deutsche Bank. The amount was undisclosed. Prior to the announcement, Modo had raised a total of $11.3 million since it was founded in 2010, reports Julie Muhn at Finovate.
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The German bank plans to leverage Modo’s technology to expand its digital business-to-business and business-to-consumer payments.
Specifically, Deutsche hopes to extend its payment capabilities into non-traditional channels, such as the mobile wallets and peer-to-peer networks of Alipay, Paypal, M-Pesa, and WeChat.
John Gibbons, head of global transaction banking at Deutsche Bank, refers to payments as the “bloodline of banking”.
He notes that Modo will give Deutsche “more flexibility” in facilitating non-traditional transactions.
“Going forward, we will be able to directly process payments to mobile wallets and app-based payment solutions,” Gibbons adds.
Modo exchanges payment data across platforms on behalf of banks, payment networks, and providers, enabling them to store, share, and track payment event data.
Late last year, Modo appointed former CEO of Klarna North America, Brian Billingsley, as its chief revenue officer.
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