Deutsche Bank buys stake in ModoPayments
Written by Hannah McGrath
Deutsche Bank has extended its FinTech portfolio through the acquisition of a minority stake ModoPayments.
The equity taken in the US paytech firm will enable the investment bank to expand its transaction banking franchise and improve its existing digital B2B and B2C payment services.
ModoPayments, founded in Dallas in 2010, has developed technology to reduce friction in the payments industry by creating interoperability between different systems without requiring changes to those systems.
Deutsche Bank is hoping to use the technology to extend payments in to non-bank platforms such as as Alipay, Paypal, M-Pesa and WeChat, and beyond traditional banking channels to new technology solutions such as mobile wallets and peer-to-peer networks.
John Gibbons, head of global transaction banking at Deutsche Bank, said: "Payments are the bloodline of banking, more and more global payments are executed electronically via FinTech and online platforms.”
He added that the bank’s partnership with Modo would help them to provide corporate and institutional clients with new digital payment functionalities and said Deutsche expects to be able to directly process payments to mobile wallets and app-based payments solutions.
Bruce Parker, chief executive of Modo, said the link up would provide the firm with a “great opportunity to work with one of the world’s largest payment providers that can implement our technology on a global scale”.