Global tech company Mastercard has agreed to acquire Swedish subscription management fintech Minna Technologies for an undisclosed sum.
With this move, Mastercard is expanding its subscription management services and aims to simplify subscription management for consumers and increase engagement for businesses.
According to Mastercard, the global subscription market currently encompasses 6.8 billion subscriptions across sectors like entertainment, shopping, software, and healthcare. This figure is projected to grow to 9.3 billion by 2028, driven by consumers seeking convenience, flexibility, and cost savings.
But difficulties have also surfaced along with this expansion. When attempting to change or cancel subscriptions, a lot of customers get frustrated, and card payment blocks frequently add to the difficulties.
Gaurav Mittal, EVP and CEO of Mastercard’s Ethoca, explains the rationale behind the move, stating that as subscriptions continue to play a “big role in people’s lives”, businesses recognise the increasing value in “subscription-related services” for their ability to foster “long-term, deeper relationships with consumers”.
“However, there are times when that experience is not exactly as expected,” Mittal’s statement continues. “Consumers who want to modify, extend or cancel a subscription, occasionally struggle to find ways to do it easily.
“Additionally, card payment blocks, a solution often used when frustrated consumers call into their banks can impede the ability of businesses to reengage consumers.”
Mastercard’s acquisition of Minna Technologies is designed to address these pain points, providing a seamless platform for managing subscriptions through banking apps and websites.
Founded in 2016 and headquartered in Gothenburg, Minna creates technology that assists consumers in managing their subscriptions directly within banking applications and websites. The company collaborates with banks, fintech firms, and subscription-based businesses across the US, UK, and Europe.
The firm claims to be the only B2B2C platform with an automated subscription management engine, bank-grade compliance, and the “widest global subscriptions and payments coverage” serving over 120 million users.
Among its clients are financial institutions such as Lloyds Banking Group, ING, Swedbank, OP Financial Group, and SpareBank 1. The company is supported by several venture capital firms, including 13books Capital, Middlegame Ventures, Zenith Capital, and Nineyards Equity.
Minna’s global workforce operates across multiple countries, including the US, UK, Sweden, Romania, and India.
This move, which is pending regulatory review, comes hot on the heels of Mastercard’s $2.65 billion September deal for US-based AI-powered threat intelligence platform Recorded Future.
We can anticipate more innovation in this field as the subscription economy grows, with businesses like Mastercard utilizing technologies that close the gap between customers, retailers, and financial institutions to build a more productive ecosystem.