Mashreq Bank on Monday, announced the completion of its sale of a majority stake in NEOPAY, a digital payments provider, to a consortium led by DgPays and Arcapita Group for $385 million. This strategic move allows Mashreq to retain a minority stake, ensuring ongoing support for NEOPAY's growth.
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Background on NEOPAY
Founded in March 2022, NEOPAY has rapidly established itself as a leader in digital transactions, processing over 400 million transactions in 2023 alone.Â
The platform serves more than 10,000 merchants across the UAE, offering services like point-of-sale terminals and mobile payments.
Mashreq's CEO emphasised the importance of this partnership, stating, "This transaction signifies our commitment to innovation and growth in the digital payments sector."
The collaboration aims to enhance NEOPAY's service offerings and expand its market reach throughout the Middle East.
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The future of digital payments
DgPays, known for its financial infrastructure technology across the EMEA region, and Arcapita, a global alternative investment firm based in Bahrain, are poised to drive NEOPAY's expansion. They plan to use their expertise to drive innovation in digital payments.
Mashreq’s decision to sell a majority stake reflects its strategic focus on digital transformation while maintaining an interest in NEOPAY's future.Â
The bank's ongoing involvement will facilitate NEOPAY's ambition to scale operations and enhance its technological capabilities.
As the Middle East continues to lead in real-time payment growth, projections estimate transactions will reach $2.6 billion by 2027, and NEOPAY is well-positioned to capitalise on this trend. The recent acquisition is key for Mashreq and NEOPAY as they navigate the digital payments ecosystem together.
