Business

Mashreq Bank Sells 65% Stake in NeoPay

Mashreq Bank, which is listed on Dubai Financial Market (DFM), on Friday said that it has signed an agreement to sell 65% of its stake in NeoPay, the brand name for its subsidiary IDFAA Payment Services LLC to a consortium of global alternative assets manager Arcapita Group Holdings Limited and Turkish fintech firm Dgpays S.a.r.l. for $385 million.

In a filing with Dubai Financial Market (DFM), where its shares are traded, Mashreq Bank also said that it was entering into a long-term shareholder arrangement with the purchasers for the future growth of the business. The transaction is subject to required regulatory approvals and consents, Mashreq Bank said.

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The payment system company is used by businesses to process transactions, including in point of sale (POS) terminals, eCommerce, mobile payment and other non-cash payments.

Arcapita operates in the GCC, Singapore, the UK and the US while the Turkish fintech firm operates in the UAE, Luxemburg and the US. Mashreq Bank said that further announcements will be made in due course.

Mashreq Bank has completed the transition of its existing payments business into IDFAA Payment Services LLC, with a brand name NEOPAY, in 2022.

NEOPAY has fuelled the growth of Mashreq’s payments business in the last three years as it leveraged the latest technology and innovation, including card processing and merchant acquiring systems, processing switches and PoS inventory to offer a seamless payments experience to merchants and consumers.

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