Deutsche Bank acquires stake in Modo 24 August 2018Frankfurt Reporter: Maddie Saghir
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Deutsche Bank has acquired an equity stake in US-based ModoPayments LCC (Modo), a payments technology start-up.
Modo’s technology is expected to help the bank expand its existing digital business-to-business and business-to-consumer payments business.
Deutsche Bank will be able to extend payments into non-bank payment platforms such as Alipay, Paypal, M-Pesa, and WeChat beyond traditional banking channels.
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.”
“Our investment and partnership with Modo will help us to provide our corporate and institutional clients with new digital payment functionalities and accordingly more flexibility in facilitating these transactions.”
He added: “Going forward, we will be able to directly process payments to mobile wallets and app-based payment solutions.”
Michael Spiegel, global head of Deutsche Bank’s Cash Management, said: “Modo’s technology will allow us to provide new transaction services and payment alternatives for the rapidly growing digital economy, for example, vendors who provide products or services like entertainment content or application development and want to be paid in their mobile wallets, an important area of growth.”
“The Modo team is focused on doing the most good for the most people by reducing friction in payments.”
Bruce Parker, founder and CEO at Modo, commented: “That is why we do what we do every day, and this partnership with Deutsche Bank is a great opportunity to work with one of the world’s largest payment providers that can implement our technology on a global scale and further our reason for being.”
"We're excited to see where this relationship can take us and how we can continue creating interoperability between payment systems around the world."
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