Entering sensitive data on a smartphone screen
Fiserv makes improved offer for payments processing firm Monitise after criticism its £70m offer was too low. iStock

US Fintech firm Fiserv has submitted an improved offer for payment processing firm Monitise worth around £75m ($100m) on Monday (7 August), after its earlier offer of £70m was criticised as too low.

Fiserv's latest and final offer of 3.1p in cash per share constitutes a premium of 34.8% over Monitise's closing price on 12 June; the date of the American company's initial offer.

The earlier bid came under criticism from Cavendish Asset Management, a major investor in Monitise, for being too low, as the company was worth over £1bn three years ago.

London's AIM-listed Monitise caught investors' eye by linking banks and mobile operators, and built a business capable of handling billions of dollars in mobile payments, money transfers and purchases.

However, the rise of free mobile payment systems offered by Apple and Google took their toll on the company's business and its share price.

Monitise said its directors have "unanimously recommended" the increased and final offer.

Banco Santander, Monitise's top stakeholder with a 4.67% stake, and Visa, which holds a 2.41% stake, have also backed the revised offer.

Fiserv also urged Monitise shareholders to accept its improved offer, however Cavendish Asset Management is yet to comment on it.