Dubai’s Mashreq carves out payments unit amid e-commerce boom


Dubai's Mashreqbank PSC has grown its payments arm into a new unit, NeoPay, to focus on handling businesses' credit and debit card payments during the ecommerce boom. — REUTERS

Dubai-based Mashreqbank PSC has carved out its payments arm into a new unit, NeoPay, focused mainly on helping businesses handle credit and debit card payments amid a pandemic-fueled ecommerce boom.

Mashreq’s new unit will fold in payment services with the lender’s existing merchant acquiring business, which helps process card-based payments. It will be led by Vibhor Mundhada, previously vice president and head of merchant acquiring.

The merchant acquirer business is among the top three in the United Arab Emirates, Mashreq said.

It processes about US$22bil (RM92.74bil) across sectors on an annualised basis and handled over 300 million transactions last year.

The lender’s decision to consolidate and grow its payments business comes at a time when banks globally are seeking to offload payment operations as they struggle to compete with specialist providers.

Larger rival First Abu Dhabi Bank PJSC carved out its own payments business last year, and subsequently sold 60% of the unit to Brookfield Business Partners LP.

Bloomberg reported in February that Mashreq was also exploring a sale of its payments business, though the lender has said it’s not currently in negotiation with potential buyers. – Bloomberg

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!
   

Next In Tech News

German court lets Tesla ads continue referring to autonomous driving
OK Google, get me a Coke: AI giant demos soda-fetching robots
Russia fines streaming site Twitch over 31-second 'fake' video - agencies
Redwire to launch first commercial space greenhouse in 2023
Metals logistics platform Minehub signs up Sumitomo Corp
Losses from crypto hacks surged 60% to $1.9 billion in Jan-July -Chainalysis
Germany: One dead, nine injured after test car veers into traffic
Buy-now-pay-later firms switch from Gen Z shoppers to businesses
Apple supplier BOE, others say operations hit by Sichuan power rationing
China-born scientist targeted by US ‘discovers world’s best semiconductor’

Others Also Read