By MATT FERNANDEZAssociated PressNEW YORK (AP) — TD Amerits mobile payment system is poised to expand into a new area with a $1.5 million investment by a technology investor and an agreement with Warren Buffett’s Berkshire Hathaway.
Warren Buffett and TD Amerital are investing in a new technology company that would be able to make a significant contribution to TD AmerITrade’s mobile payments system, according to people familiar with the matter.
The investment comes a week after TD Ameriatrade’s founder, Bill O’Reilly, announced that the company had secured $3 billion in funding from the likes of Warren Buffett and Berkshire Hathaways founder Charles Koch.
O’Reilly said the investment was an important first step in building a sustainable business and said it was aimed at helping TD Amerity become the nation’s biggest and most secure financial institution.
TD Ameris new mobile payments platform is expected to be up and running by the end of next year.
The TD Ameriti acquisition comes as other major players such as PayPal, Citibank and Wells Fargo are ramping up their own mobile payments efforts.
It also marks the start of a new era for the payments industry, with the arrival of technology companies that can make payments faster and easier to use.
The new company, called Vistaprax, will be based in New York, according the people familiar.
The company has yet to be formally named.
The people spoke on condition of anonymity because the company is still under construction.
Visteprax will be backed by a mix of private capital and venture capital, according a person familiar with its plans.
TD’s existing technology business, Vistax, has been buying up mobile payments technology companies to build its own payment platform.
Vantaprax will focus on building a payment solution that is more secure than what is currently available in TD’s current mobile payments product.
It will focus not only on the technology but also on how it works, the people said.
TD will use Vistepax’s technology to offer more secure, flexible and user-friendly mobile payments to consumers and businesses across the U.S. and internationally, the People said.
Vists mobile payments products are already available in the U., U.K., Australia, South Africa, Japan and Europe, the person said.
It is not clear when Vistavax will be available in U.M. and U.A. markets.
The deal will give TD Ameritex its largest single acquisition in history.
It includes a controlling stake in the company and other companies including U.P.T., a payment provider that helps customers manage their transactions with merchants and consumers.VISTAPRX will be a subsidiary of Vistatix, a company based in San Francisco that provides digital payment solutions to merchants, according Topps, which is one of the companies that will handle the transactions.
Vistapex is part of VistaPay, which makes mobile payments and has about 50,000 active users worldwide.
The $1 billion deal is one-third of the $2 billion O’ Reilly made in 2011 when he bought a stake in TD to take the company public.
O’Reillys investment helped TD Ameritays share price soar by over 200 percent in the past year, while his wife, Heidi, became one of TD’s largest investors.