Spain’s CaixaBank and telco Telefonica have announced the launch of a new company, Telefonica Consumer Finance, which aims to strengthen the provision of mobile payment handsets and services to consumers in Spain.
The new firm will be 50% owned by each of the partners, with Telefonica acting as the sales partner and CaixaBank, via its FinConsum subsidiary, providing financing and overseeing operating procedures.
The new firm is the result of a 2012 agreement between the two companies, under which CaixaBank, via its FinConsum subsidiary, helps Movistar customers to pay for their mobile devices in affordable installments over 24 months. Telefonica will leverage its experience in mobile device sales, as well as its extensive network of mobile phone stores, while FinConsum, with its specialisation in consumer financing, will run the key operating procedures.
CaixaBank vice-chairman and CEO, Juan María Nin, said: “With more than a million contracts expected annually, this finance company will be the second largest in Spain in terms of transaction numbers, which underscores just how important this agreement is.”