The international growth and widespread adoption of Open Banking is resulting in M&A activity, with Middle Eastern company Tarabut acquiring London-based account-to-account (A2A) payments platform Vyne.
Closed on 1 August but not announced until early September, the takeover will result in Vyne’s A2A payments technology being integrated into Tarabut’s own operations across the Middle East. Bahrain will be the pilot market for the acquisition, followed by Saudi Arabia and the UAE as Open Banking regulations develop in these two countries.
Tarabut hopes to make use of Vyen’s payment technology for account-to-account payments and a more streamlined operational process, with real-time reporting and reconciliation. The firm is targeting a leadership position in the Middle East, where the fintech and payments sectors are growing rapidly.
Abdulla Almoayed, CEO of Tarabut said: “We are excited to welcome Vyne into the Tarabut family. This acquisition is a pivotal step in our long-term growth strategy, allowing us to bring mature, tried and tested payment products to the region, and providing solutions for the everyday issues that merchants and consumers face when taking or making payments.
“With Vyne’s technology, we are well-positioned to capitalise on new opportunities for innovation, market penetration and sustainable growth. This is a significant milestone in Tarabut’s mission to seamlessly connect financial ecosystems in the Middle East.”
Open Banking has become one of the biggest talking points in payments and financial services over the past year. Various governments, regulators and financial institutions have been actively involved in pushing the tech forward.
In Vyne’s home market, the UK, the government has been pursuing a leadership position in Open Banking for some time. This was an objective of the previous Conservative administration which has also been set out by the newish Labour government, whilst firms like Trustly have noted rising Open Banking volume in the UK.
Meanwhile, the Middle East is home to a range of developing fintech scenes, with Open Banking evolving within each one. Saudi Arabia has been particularly active on Open Banking, with Bank Albilad becoming the country’s first financial institution to offer it last year.
Karl MacGregor, CEO and Co-Founder of Vyne, added: “The Middle East is experiencing exponential growth and transformation in the financial services sector, and as regulations catch up, our technology can simultaneously ensure compliance and convenience.
“Merchants and consumers want speedy, secure, and convenient customised payment experiences. Open Banking solutions can deliver on this demand. We believe the future of payments is digital and they need to be frictionless, contactless and fair.
“Becoming part of the Tarabut family allows us to bring our innovative payment solutions to one of the fastest-growing markets in the world.”
