Major French banks merge mobile payments offerings

Two payments apps backed by major French banks are merging to launch as a new entity early next year.

Backed by BNP Paribas and supermarket giant Carrefour, Wa! will join forces with Crédit Mutuel-CIC, MasterCard and Auchan Retail-backed Fivory to combine their mobile payments solutions.

The currently unnamed joint venture will allow users to make in-store and online payments, as well as carry out P2P money transfers, settle invoices and use loyalty point and coupons.

Consumers will be able to use the digital wallet at more than 20,000 French retailers at launch.

BNP Paribas and Crédit Mutuel will each hold a 40% stake in the combined entity.

The companies say that the merger is a result of their desire to offer the ecosystem a single offering and unite skills.

BNP Paribas group CEO Jean-Laurent Bonnafé said, “We’re seeing growing interest in the market for such a solution and it’s now vital that the complementary players work together to build and make available a solution able to meet new customer expectations in this changing world.”

It comes as a sign of consolidation in the increasingly competitive payments ecosystem where companies ranging from Apple to PayPal to MasterCard are all fighting for users and merchants.

Copyright © 2016 FINTECH GLOBAL