E-purse: Moneo’s sale

• BMS (Billettique, Monétique, Services) and SFPMEI (Société Financière du Porte-Monnaie Electronique Interbancaire) were sold to the French private equity firm BlackFin Capital Partners. BMS sells Moneo e-purse and SFPMEI is the e-money institution in charge of issuing, guaranteeing and managing the electronic value. SFPMEI authorisation was recently extended by French regulatory body ACP as it also became a Payment Institution for issuing and acquisition payment services. All banks holding shares committed further to sell Moneo during five years.

• The 100 million euros funds BlackFin was created in 2008 and specialises in financial services. Three of its managers are the founders of the ProCapital group and its online broker Fortuneo which was sold in 2006 to the Crédit Mutuel Arkéa. BlackFin's first investment, end November 2010, was the purchase of 15% shares in Owliance, an insurance broker.

• Moneo was created in 1999 by France Telecom, the RATP, SNCF as well as seven French banks (BPCE, Crédit Agricole-LCL, BNP Paribas, Société Générale, Crédit Mutuel-CIC, HSBC and La Banque Postale). It was refocused in 2003 on niche segments such as CROUS student cards, car park payment and local authorities. The number of payments went up from 17 to 40 million between 2005 and 2009, for an average cart of 2.50 euros. Despite all this and a 100 million euros' allocation since launch, Moneo never reached its break-even point.

Notre analyse

• French banks' disinvestment in the e-purse was long expected. Moneo's sale to a private equity specialised in innovating project in the field of financial services however was less expected. SFPMEI authorisation to become a PI augurs a more elaborated strategy. Moneo used to be proposed only by banks and will now be issued and acquired directly by BMS / SFPMEI. In addition, new shareholders may wish to develop this activity on niche segments. The card would then be used for user identification, authentication and in payment processes. Public administrations (civil servants’ cards) and hospitals are most likely to be targeted.