Visa, Mastercard and big banks bet on global payments tech | PaymentsSource

Payment companies have long been attracted to the recurring predictable payment revenue that subscriptions provide. To expand relationships with card issuers, Mastercard has agreed to acquire Minna Technologies, a firm that enables consumers to manage subscriptions within banking apps and websites.

The Gothenburg, Sweden-based Minna’s clients include financial institutions that use its technology to offer consumers an easier way to pay for, change, extend or cancel a subscription.

There are more than 6.8 billion subscriptions, according to Juniper Research, which projects that will grow to 9.3 billion by 2028. This growth comes through the proliferation of streaming media platforms such as Hulu or Netflix, and the use of e-commerce premium relationships that encourage repeat uses by charging a monthly fee. Firms such as Dollar Shave Club and apps like Fresh Direct that deliver ingredients for meals on a recurring basis are also gaining traction with consumers, who can accumulate a growing number of subscriptions, potentially making them difficult to manage. 

Mastercard plans to use Minna’s technology to provide a single view of all a consumer’s subscriptions in a hub, providing a way to make changes, access receipts and minimize card blocks.

The deal will also help Mastercard to diversify its revenue streams beyond payment processing, a key goal for both Mastercard and Visa as interchange fees come under pressure from regulators and competitors. The Minna acquisition is subject to regulatory approval, and terms were not disclosed. —John Adams