Bwin.party’s Kalixa in joint venture with Millicom
Kalixa, the payment service provider wholly owned by online gaming operator bwin.party, has established a joint venture with Millicom, a telecommunications and media company dedicated to emerging markets in Latin America and Africa.
The two companies will work together to develop a payments service provider for Africa and Latin America.
Operations are due to begin in Brazil and Colombia later this year, with Kalixa and Millicom both making an initial investment of $4 million (€3.1 million) and appointing two directors each to the joint venture’s board.
Payment acceptance services will be offered for both businesses and consumers, including payment gateway and point-of-sale solutions for merchants, as well as a one-click payment and eWallet provision for online customers.
The solution will also offer cross-platform, multi-devices services.
The joint venture will also benefit from Millicom’s existing reach across Africa and Latin America through its Tigo infrastructures in 14 countries and its online partnerships in 33 countries.
In addition, the joint venture will draw on Kalixa’s experience of providing payment services such as issuing, acquiring and acceptance solutions to around 8,000 merchants across 100 markets.
“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 chief executive officer Ed Chandler said.
“As developing markets, Latin America and Africa represent a combined $1.78 trillion opportunity for the payments industry.”
Hans-Holger Albrecht, president and chief executive officer of Millicom, added: “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.”
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