Mashreq Bank Sells Majority Stake in Paytech Neopay for $385M

Mashreq Bank completed the sale of a majority stake in Neopay, its payment technology subsidiary, to a consortium led by Dgpays and Arcapita for $385 million. Mashreq retains a minority stake, maintaining strategic ties to the payments platform. Neopay provides payment processing and acquiring infrastructure in the MENA region, serving merchants and businesses with embedded payment solutions.

The deal allows Neopay to pursue independent growth and potentially expand its platform to serve additional financial institutions and fintechs beyond Mashreq's ecosystem. For the acquiring consortium, the investment provides exposure to the rapidly growing MENA payments market. The transaction reflects a broader trend of banks spinning off or partially divesting payments subsidiaries to unlock value and enable these platforms to operate as independent embedded finance providers.

The $385 million valuation signals strong investor confidence in MENA payment infrastructure.