Bwin.party payment arm in Lat Am and Africa joint-venture
Kalixa has formed a 50:50 partnership with Millicom to expand its payments offering into Latin America and Africa
Bwin.party’s payments arm Kalixa has formed a 50:50 joint venture with telecommunications and media company Millicom, in a bid to expand into Latin American and African markets.
Operations are scheduled to begin in Columbia and Brazil later this year, with Kalixa and Millicom each making an initial investment of US$4m and appointing two directors each to the board.
The news comes just weeks after bwin.party teased a possible partnership in its H1 financial update, saying it was in “advanced discussions” with an international corporation that would provide Kalixa with access to new markets.
The joint venture will offer B2B and B2C services, including payment gateway and point of sale solutions for merchants, plus a one-click payment and ewallet offering for online customers.
Millicom already has a strong presence in Latin America and Africa through its Tigo brand, which offers a range of digital services including mobile communications, pay TV and internet and broadband.
“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,” said Millicom CEO Hans-Holger Albrecht.
“It is a great combination of our respective expertise,” he added.
Bwin.party has made no secret of plans to form more strategic partnerships for Kalixa following the acquisition of PXP Solutions in May.
“This joint venture is part of our three-year plan to grow the Kalixa group and leverage its strong technology and payment processing capabilities to increase shareholder value,” Kalixa CEO Ed Chandler said.
“As developing markets, Latin America and Africa presents a combined $1.78 trillion opportunity for the payments industry,” he added.
The gaming operator is set for a major shakeup in the second half of the year in a bid to arrest continued decline in revenues and profits, with the firm considering external investment and spinning off its US business.
Bwin.party’s share price was up 1.5p to 94.25p after early morning trading.