United Arab Emirates digital payments firm NEOPAY has agreed to a definitive deal for the noon payments acquisition, purchasing a 65% controlling stake in the company. The transaction marks an expansion for NEOPAY across Middle East and North Africa commerce corridors, subject to regulatory conditions precedent and antitrust approvals.
Details of the noon payments acquisition
The agreement unites the acquiring network and merchant services of NEOPAY with the online checkout tools of noon payments. Specifically, this integration will serve merchants operating across the UAE, Saudi Arabia, and Egypt. The combined business aims to deliver digital acceptance, point-of-sale acquiring, faster settlements, and merchant analytics.
According to both companies, the move addresses merchant demand for unified payment systems that operate across physical retail and digital storefronts. Furthermore, following the noon payments acquisition, merchants will gain access to installment options, fraud tools, and alternative payment methods via connected software solutions.
“This is an important milestone in NEOPAY’s journey. We have built a strong payments business in the UAE, and our ambition is now to take that capability across the region. noon payments has built an impressive digital payments platform with a strong presence in some of MENA’s most important e-commerce markets.”
Vibhor Mundhada, CEO of NEOPAY
Expansion Across Regional Markets
Under the combined roadmap, the entities plan to accelerate merchant onboarding while improving overall transaction authorization rates. In addition, the agreement links NEOPAY directly with sellers on the noon marketplace. This connection creates higher transaction density across core online commercial segments in the region.
Moreover, both teams intend to upgrade transaction monitoring and cybersecurity systems to protect merchant balances against fraud. Cross-border payments between the UAE, Egypt, and Saudi Arabia will also receive dedicated processing channels to reduce regional transaction costs.
“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.”
Faraz Khalid, CEO of noon
Corporate Background and Backing
NEOPAY operates as a merchant acquiring entity backed by an investor consortium led by Arcapita and Dgpays, alongside ongoing support from Mashreq. The business provides processing systems, payment orchestration, and issuer solutions to businesses, government bodies, and financial firms across the Middle East.
Meanwhile, parent firm noon launched its consumer commerce marketplace in Saudi Arabia and the UAE on December 12, 2017. The retailer expanded operations into Egypt in February 2019, developing internal fulfillment, logistics, and digital settlement systems across all three markets.
Regulatory Review and Outlook
Closing conditions for the noon payments acquisition remain subject to standard statutory clearances from regional competition authorities. Once formally completed, the transaction will position the combined entity as a unified payment processor across three of North Africa and the Middle East’s primary markets.
