MENA-based Open Banking platform Tarabut has acquired London-based account-to-account payments platform for online businesses Vyne, as new regulations for payment initiation services (PIS) in Saudi Arabia and Open Finance in the United Arab Emirates (UAE) come into effect.
The acquisition has been approved by both the Saudi Central Bank (SAMA) and the Financial Conduct Authority in the UK.
The deal, which officially closed on 1 August, extends Tarabut’s operational footprint to the UK. The financial details of the deal have not been disclosed.
The integration of Vyne’s technology will enable Tarabut to provide A2A payment capabilities in the Middle East, starting with Bahrain, where it expects its first customer to go live by the end of the year.
Businesses in the retail, automotive, and SME sectors will be able to move money in real time via bank account-linked payments.
Tarabut will expand its new A2A payments offering to Saudi Arabia and UAE in time.
Yesterday, SAMA issued the second release under its Open Banking Framework, which is focused on PIS.
“We are excited to welcome Vyne into the Tarabut family,” Abdulla Almoayed, chief executive officer of Tarabut, said “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.”
He added: “With Vyne’s technology, we are well-positioned to capitalize 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 Finance in the UAE is being phased in, starting with Open Banking, and followed by Open Insurance, with a view to providing access to “the majority of customers” in 2024.
“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,” Karl MacGregor, chief executive officer and co-founder of Vyne, said.
According to MacGregor, 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,” he added.
“Becoming part of the Tarabut family allows us to bring our innovative payment solutions to one of the fastest-growing markets in the world.”
Tarabut announced a $32 million Series A fundraise in May 2023, led by alternative investment firm Pinnacle Capital, with participation from bank affiliate institutional investor Aljazira Capital, Visa, Tiger Global, and other existing investors.
