Bulgarian embedded finance firm Paynetics has bolstered its environment, social and governmental (ESG) activity via acquisition, taking over UK neobank Novus.
Founded in London in 2020, Novus is the UK’s first ever ‘impact Neobank’ according to a Paynetics press release.
The company’s new British holding focuses on informing consumers to make conscious financial decisions whilst continuing ‘event driven positive impact initiatives’.
The firm’s business model sees a portion of revenue from every transaction directed to an NGO of the customer’s choice. Users can also track the carbon footprint of purchases via certified carbon removal projects.
“Novus’ mission was to create impact through the lens of finance,” said Hristian Nedyalkov, CEO & Co-Founder of Novus.
“Our vision was to empower all consumers and corporates to do well while doing good. With Paynetics’ expertise, we’ll amplify our mission and reach new heights.”
Paynetics plans to leverage its new ESG asset to expand its ecosystem in this area and also assist its embedded finance clients with pushing forward their own initiatives.
Although this marks an expansion of Paynetics’ ESG efforts, this is not the first move the company has made in the wider field of corporate social responsibility (CSR).
Just last month, the company partnered with Woli, a money management platform. Although the deal had a strong commercial element, revolving around transactions, it also contained a CSR focus on assisting younger generations with navigating economic challenges.
Additionally, the takeover of Novus also indicates a resumption of M&A activity for Paynetics. The firm has been active in this area in the past, having acquired digital payments app Phyre last year.
Paynetics had previously partnered with Phyre in a CSR initiative supporting humanitarian organisations in the aftermath of Russia’s invasion of Ukraine.
Ivo Gueorguiev, Co-Founder of Paynetics, remarked: “We believe in the power of people to transform the world. Paynetics’ acquisition of Novus aligns perfectly with our mission to accelerate businesses through innovation and speed.
“Together, we’ll create a future where a single platform empowers clients to grow while making a positive impact.”
