UAE-based fintech PayTabs has announced it plans to acquire 100% stake in Saudi Arabia-based Digital Pay.
Under the terms of the acquisition, Digital Pay will serve as PayTabs’ flagship point of sale (POS) terminal product, enabling and augmenting ecommerce and retail businesses, as well as physical stores, hypermarkets, and departmental stores.
The merger allows PayTabs to complete its foray into both online and offline payment capabilities and elevate its market presence and commitment to the Kingdom’s Vision 2030. The aim is to grow the bottom line, revenue, transaction volumes, ticket sizes, and the number of transactions for both companies.
Having established itself the MENA payment space with an online payment gateway acceptance and expanded its portfolio to include soft-POS tap-to-pay solutions, and more recently full-stack payment orchestration and social commerce, PayTabs will now ‘cater to more retailers and traditional businesses that wish to offer payment acceptance via POS terminals.’
By providing merchants with more methods to accept payments, both firms are augmenting merchants with digital payment methods, which powers and pushes forward the aim of the Saudi Vision 2030.
This move will solidify PayTabs’ mission to provide a holistic payments ecosystem platform for the region. This reportedly includes supercharged, seamless payment experiences for businesses in all key segments in the region from travel and trade to hospitality and healthcare.
Digital Pay will continue to expand its footprint by offering POS to online merchants as well as in multiple PayTabs markets. Any business will now be able to benefit from either digital payment acceptance solutions in the online space or the brick-and-mortar offline payments space.
Digital Pay’s officials stated that as an innovative fintech company driving digital payments in the Kingdom of Saudi Arabia, the proposed merger with PayTabs will enable them to expand their customer and merchant reach across the region.
According to Statistica, the total transaction value in the digital payments segment is projected to reach USD 42.25 billion in 2022. The total transaction value is expected to show an annual growth rate of 13.16% or a projected total amount of USD 78.40 billion by 2027.
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