Mashreq Bank completes USD 385 million stake sale in NeoPay

Led by a consortium consisting of DgPays and Arcapita Group Holdings, the acquisition brought Mashreq Bank, which is a privately owned bank providing online banking and ecommerce services, approximately USD 385 million. Initially, Mashreq announced details of this stake sale back in September 2024, mentioning that the initiative could expand the platform’s capabilities. At that time, the agreement was set to see Mashreq entering into a long-term collaboration with the buyers to further develop NeoPay’s features. The platform provides businesses with a suite of payment processing solutions, including POS terminals, ecommerce, mobile, and other non-cash payment methods.

Supporting NeoPay’s growth

Even if the majority stake is currently owned by the consortium, Mashreq still holds a substantial minority stake in the digital payment platform. Introduced in March 2022, NeoPay has a significant position in the UAE’s digital payment sector, processing over 400 million transactions in 2023, according to company data. Additionally, the platform provides its solutions to over 10,000 merchants across the region.

Furthermore, despite selling a majority stake to the consortium, Mashreq underlined its commitment to supporting NeoPay’s development, as highlighted in a statement filed with Dubai Financial Markets (DFM). At the same time, the partnership forged between Mashreq, DgPays, and Arcapita Group Holdings aims to assist NeoPay in scaling its operations, entering additional markets, and further optimising its service offerings across the Middle East. Turkey-based DgPays, which delivers financial infrastructure technology, and Bahrain-based Arcapita, providing global alternative investments, are set to bring their knowledge to advance NeoPay’s development strategy.

What does NeoPay do?