UAE-based FinTech firm TPAY Mobile is acquiring 100 percent stake in Turkey’s mobile payment platform Payguru, it has been announced.
The acquisition is expected to strengthen the payment enabler’s presence in the Middle East and diversify into new business lines.
The deal comes at a time when demand for digital payment services is surging due to the coronavirus pandemic. Within the Middle East and Africa region, mobile payments is a popular alternative among 50 percent of the population, most of which is underbanked.
The FinTech sector in the Middle East and North Africa (MENA) region is also growing at a compound annual growth rate (CAGR) of 30 percent, much higher than the average global rate of 11 percent.
However, the transaction between TPAY and Payguru is still subject to the approval of the Central Bank of the Republic of Turkey (CBRT) and the Competition Authority.
Payguru offers several services, including mobile payments, ATM cash payments and bank transfers to merchants.
TPAY Mobile is a digital merchant acquirer that enables payments acceptance from more than 54 mobile payment types and wallets, which are connected to more than 580 million consumers.
According to Sahar Salama, founder and chief executive officer of TPAY Mobile, the acquisition of Payguru will support their diversification and expansion strategy.
“This transaction extends our footprint in the region, continues our diversification into new business lines and also significantly strengthens our value-added services proposition int he region,” he said.
“The regional and global FinTech sector is at an inflection point for growth, making this the perfect time to welcome Payguru in our fold,” he added.