NEOPAY Signs Agreement to Acquire 65% of noon payments

NEOPAY has signed a definitive agreement to acquire a 65% controlling stake in noon payments. Completion of the transaction will be subject to approvals from regulatory and competition authorities. Through the agreement, the company aims to strengthen its position in the United Arab Emirates, expand into Saudi Arabia and Egypt, and grow its e-commerce-focused digital payment capabilities across the region.

NEOPAY and noon payments’ Infrastructures Will Be Combined

Once the acquisition is completed, NEOPAY’s scalable acquiring infrastructure, omnichannel payment acceptance capabilities, and merchant services will be combined with noon payments’ embedded payments platform, e-commerce payment gateway, and merchant network across the UAE, Saudi Arabia, and Egypt. As a result, online payment acceptance, in-store collections, faster settlement, data analytics, and value-added financial services are planned to be offered under a single structure.

NEOPAY CEO Vibhor Mundhada described the agreement as “an important milestone in the company’s growth journey.” Mundhada said they had built a strong payments business in the UAE and aimed to extend this capability across the region. He also emphasized that noon payments had built a strong digital payments platform in key e-commerce markets across MENA.

E-Commerce Merchant Network and New Payment Options Come to the Fore

noon payments has achieved high transaction volumes in the region’s rapidly growing digital commerce segments through its integrations with marketplace sellers and online merchants. Following completion of the transaction, NEOPAY is expected to gain access to additional merchant relationships and payment flows, while alternative payment methods and installment options are targeted to be rolled out more rapidly.

The combined structure will also work on faster merchant onboarding, improved payment performance, advanced fraud prevention capabilities, and embedded financial services. The companies also plan to strengthen cross-border payment and settlement infrastructure across key trade corridors in the region.

NEOPAY Accelerates Its Regional Growth

The company was established by Mashreq in 2022 as an independent payments business. NEOPAY processed more than 400 million transactions in 2023 and was used by more than 10,000 merchants in the UAE. In 2024, in a transaction in which Arcapita and DgPays acquired a majority stake, the company reached a valuation of approximately $385 million, while Mashreq retained a significant minority stake.

noon CEO Faraz Khalid stated that payments should be simple, reliable, and suited to the markets being served, adding that the two companies together would contribute to the growth of merchants and make the payment experience easier for millions of customers.

At a time when AI-powered fraud systems, data analytics, and automation are gaining importance in payment infrastructures, the agreement aims to bring e-commerce, retail, and digital payments together in a more integrated structure across the region.