Gemalto Reveals Some Details of MCX Deal; Vendor Will Earn Fees for Transactions

France-based smart card and security vendor Gemalto will operate the mobile-payment platform for U.S. merchant group MCX, earning a fee for every transaction, in addition to what appears to be a hosting fee it says is worth tens of millions.

Gemalto CEO Olivier Piou in speaking to financial analysts today following release of the vendor’s first quarter results, revealed some details of the vendor’s contract with MCX, which Gemalto announced April 17. He told analysts that the platform it is providing to MCX could potentially earn the vendor hundreds of millions in fees over the course of the contract, though only if it takes off with consumers.

MCX, or the Merchant Customer Exchange, hired Gemalto to secure the bar-code or QR-code based payment service or services it plans to offer to consumers through MCX-based mobile wallets or other apps introduced by member merchants. Gemalto is also providing wallet software, including development kits enabling member merchants to build their own MCX-enabled wallet apps.

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