Dubai-based Mashreqbank PSC has carved out its payments arm into a brand new unit, NeoPay, centered primarily on serving to companies deal with credit score and debit card payments amid a pandemic-fueled ecommerce boom.
Mashreq’s new unit will fold in cost companies with the lender’s current service provider buying enterprise, which helps course of card-based payments. It shall be led by Vibhor Mundhada, beforehand vice chairman and head of service provider buying.
The service provider acquirer enterprise is among the many prime three within the United Arab Emirates, Mashreq mentioned.
It processes about US$22bil (RM92.74bil) throughout sectors on an annualised foundation and dealt with over 300 million transactions final yr.
The lender’s choice to consolidate and develop its payments enterprise comes at a time when banks globally are in search of to dump cost operations as they wrestle to compete with specialist suppliers.
Larger rival First Abu Dhabi Bank PJSC carved out its personal payments enterprise final yr, and subsequently offered 60% of the unit to Brookfield Business Partners LP.
Bloomberg reported in February that Mashreq was additionally exploring a sale of its payments enterprise, although the lender has mentioned it’s not presently in negotiation with potential consumers. – Bloomberg
