Mashreq Bank, a leading financial institution in the Middle East and North Africa (MENA) region, has completed the sale of a majority stake in its digital payments subsidiary, NEOPAY, for $385 million. The stake was acquired by a consortium comprising Arcapita Group Holdings Limited, a global alternative investment firm based in Bahrain, and DgPays, a prominent financial infrastructure technology provider in the Europe, Middle East, and Africa (EMEA) region.
Despite the divestment, Mashreq retains a significant minority stake in NEOPAY, signaling its ongoing commitment to the company’s growth and the broader digital payments sector. This strategic partnership is expected to facilitate NEOPAY’s expansion into new markets and the enhancement of its innovative services across the Middle East.
Launched in March 2022, NEOPAY has rapidly established itself as a key player in the UAE’s digital payments landscape. In 2023, the platform processed over 400 million transactions and serves more than 10,000 merchants nationwide. Its services encompass a wide range of payment solutions, including point-of-sale terminals, e-commerce, mobile payments, and other non-cash payment methods.
The Middle East is experiencing significant growth in real-time payments, with transactions projected to reach 2.6 billion by 2027, representing a compound annual growth rate of 30.6%. NEOPAY’s strategic alignment with Arcapita and DgPays positions it to capitalize on this burgeoning market.
Mashreq’s decision to carve out its payments arm into a separate unit in March 2022 reflects a strategic focus on digital transactions, aligning with global trends towards cashless economies. The collaboration with Arcapita and DgPays is anticipated to drive innovation, foster growth, and shape the future of digital payments across the region.
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