NEOPAY to acquire 65% stake in noon payments in MENA expansion

Dubai: UAE payments company NEOPAY has entered into a definitive agreement to acquire a 65 per cent controlling stake in noon payments, in a deal that will combine the companies’ payments infrastructure and expand NEOPAY’s presence into Saudi Arabia and Egypt.

Completion of the transaction remains subject to customary conditions, including applicable regulatory and antitrust approvals, NEOPAY said on Monday.

The deal brings together NEOPAY’s acquiring infrastructure, omnichannel payment acceptance and merchant services with noon payments’ embedded payments platform, e-commerce gateway and merchant network across the UAE, Saudi Arabia and Egypt.

The transaction is part of NEOPAY’s ambition to build a regional payments platform, with the company saying the combination will expand its digital commerce capabilities and strengthen its position in the UAE.

Vibhor Mundhada, CEO of NEOPAY, described the agreement as “an important milestone” in the company’s growth.

“We have built a strong payments business in the UAE, and our ambition is now to take that capability across the region,” Mundhada said.

He said noon payments had built “an impressive digital payments platform” with a presence in some of MENA’s key e-commerce markets.

“By combining their strength in digital commerce with NEOPAY’s acquiring and omnichannel capabilities, we have the opportunity to create a truly regional payments platform that can serve merchants seamlessly across channels and markets,” he said.

The transaction, he added, would “reinforce our leadership in the UAE, expand our footprint into Saudi Arabia and Egypt, and strengthen NEOPAY’s position as the payments provider of choice for businesses across MENA”.

For noon, the transaction brings its payments business closer to a dedicated regional payments infrastructure provider while retaining its broader e-commerce ecosystem.

Faraz Khalid, CEO of noon, said: “Payments should be simple, reliable, and built for the markets they serve.”

“NEOPAY brings deep local expertise and strong infrastructure. Together, we can help merchants grow and make paying easier for millions of customers across the region,” he said.

The transaction is subject to regulatory and antitrust approvals before completion.

noon payments has established integrations with marketplace sellers and online merchants, creating what NEOPAY described as high transaction density across some of the region’s fastest-growing digital commerce segments.

Once completed, the transaction will give NEOPAY access to additional merchant relationships and payment flows, while supporting the rollout of payment options including alternative payment methods and instalment plans.

The combined business will also focus on faster merchant onboarding, payment performance, fraud capabilities and embedded financial services, according to NEOPAY.

The companies said the transaction could also strengthen cross-border payments and settlement capabilities across major regional commerce corridors.

The deal comes as digital payments and merchant acquiring become an increasingly important part of the UAE’s financial services market.

NEOPAY was launched by Mashreq in 2022 as a standalone payments business, with services spanning merchant acquiring, card processing, payment gateways and point-of-sale infrastructure.

In 2024, Arcapita and DgPays agreed to acquire a majority stake in NEOPAY from Mashreq in a transaction that valued the business at about $385 million. Mashreq retained a significant minority interest.

Mashreq subsequently completed the sale in January 2025. At the time, the bank said the strategic partnership would enable NEOPAY to “scale its operations, enter new markets, and enhance its innovative service offerings across the Middle East”.

NEOPAY had processed more than 400 million transactions in 2023 and was being used by more than 10,000 merchants in the UAE.