Visa Europe "will reduce its shareholding over time while continuing to work with the company throughout the duration of its current commercial agreement," Monitise said.
The agreement, which involves Monitise helping Visa Europe develop payments and shopping services for mobile devices, runs until March 31.
Visa Europe's decision mirrors a similar one taken last year by Visa Inc. ( V ), a separate U.S.-based entity, which prompted a sharp fall in Monitise's share price.
The company has also downgraded its revenue expectations several times and is now well short of the valuation above 1 billion pounds ($1.56 billion) it sat at last year.
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