Millicom and Kalixa have announced the establishment of a joint venture to develop a payments service provider to operate in Africa and Latin America, initially commencing in Colombia and Brazil later this year.
The initial phase of the joint venture will begin in H2 2014 and will provide an end-to-end service for ecommerce providers.
The joint venture will offer payment acceptance services for both businesses and consumers, including payment gateway and point of sale solutions for merchants as well as 1-click payment and eWallet provision for online customers.
The partnership will cover the end-to-end payment ecosystem and will offer multi-device and cross-platform services.
Millicom’s CEO and President, Hans-Holger Albrecht said: “Working with Kalixa will enable us to offer a complete digital payments service in markets where ecommerce is growing rapidly and where we already have a strong presence. It is a great combination of our respective expertise.”
Ed Chandler, CEO of Kalixa, commented: “As developing markets, Latin America and Africa represent a combined $1.78 trillion opportunity for the payments industry. Our partnership with Millicom is the first step in making payments easier for merchants and consumers in these regions by offering a connected service with the full spectrum of payment services being offered under one roof. As we have already seen in Europe, by removing unnecessary links in the chain we can service customers more efficiently. This allows us to pass the value back to help merchants capitalise on the digital explosion happening in this region."