mFoundry expands mobile banking business

mFoundry has emerged as a leader in mobile banking, providing its software as a service model to almost 600 banks, credit unions and other financial institutions. Now it's raising $18 million to expand its mobile banking business into mobile payment, GigaOM reports.

The money will help build mFoundry's existing mobile banking business, which includes creating mobile apps for some top banks, including Bank of America and PNC. mFoundry is looking to turn those mobile banking apps into digital wallets by adding support for MasterCard's PayPass NFC payments, it will allow banks to provide their own digital wallets that work at NFC-equipped point-of-sale terminals.

According to Zippy Cart, MasterCard's PayPass technology allows shoppers to swipe their mobile phones at PayPass terminals, wherever they are available, to complete transactions.

Digital wallets have not been quickly adopted by consumers and retailers, but with new mobile e-commerce solutions from companies like mFoundry popping up, increasing numbers of retailers will begin to accept digital wallet payments.

North Bay Business Journal states that in recent Federal Reserve analysis, the company cited that mobile banking will reach 50% consumer adoption in a little over six years, compared with longer than 15 years for ATMs and more than 20 for online banking.