Mashreq Bank sells 65% stake in NeoPay for $385mn

DUBAI: Dubai-listed Mashreq Bank has announced the sale of a 65 per cent stake in NeoPay, the trading name for its subsidiary IDFAA Payments Services LLC, to Arcapita Group Holdings Limited and Turkish fintech firm Dgpays S.A.R.L for a transaction valued at $385 million.

The decision reflects Mashreq Bank’s intention to realign its focus while fostering growth in the rapidly evolving payments sector.

NeoPay operates as a vital player in the payment systems industry, facilitating a range of transaction processing solutions for businesses. These include point of sale (POS) terminals, eCommerce platforms, mobile payments, and other non-cash payment methods.

As businesses increasingly shift towards digital and contactless payment solutions, the importance of such services is amplified, thereby positioning NeoPay advantageously within the market.

The partnership between Mashreq Bank and the purchasing entities, Arcapita and Dgpays, signals a commitment to a long-term shareholder arrangement aimed at enhancing the future growth of NeoPay.

Arcapita, an established alternative asset manager with operations across the Gulf Cooperation Council (GCC), Singapore, the UK, and the US, brings a wealth of investment experience to the venture. Concurrently, Dgpays, with its operational footprint extending into the UAE, Luxembourg, and the US, adds a strong fintech presence, poised to leverage emerging trends in the payments landscape.