Tarabut, the largest regulated open banking platform in the MENA region, has made a significant move in the financial services sector with its acquisition of Vyne, a UK-based real-time account-to-account (A2A) payments platform. This strategic acquisition, finalized on August 1, 2024, positions Tarabut to deliver faster, more interconnected financial services, both regionally and globally, as new financial regulations come into play across Saudi Arabia and the UAE. The deal was approved by both the Saudi Central Bank (SAMA) and the UK's Financial Conduct Authority (FCA).

Strategic Timing Amid Regulatory Developments

The timing of this acquisition aligns with critical regulatory shifts in the region. On the heels of the Saudi Central Bank's announcement of the second version of their open banking framework, and with upcoming regulations in the UAE around Open Finance and Payment Initiation Services, Tarabut is strategically positioning itself as a leader in open banking and digital financial services. By integrating Vyne's cutting-edge A2A payment capabilities, Tarabut will be able to offer more efficient, cardless payment solutions to businesses and consumers in the Middle East.

Vyne: A Rapidly Growing Payments Platform

Founded in 2019, Vyne has established itself as a leading player in the UK fintech ecosystem, processing billions of dollars through partnerships with hundreds of businesses across various industries such as retail, financial services, and automotive. Vyne's core technology allows customers to move money in real-time, directly from their bank accounts, bypassing the slow and often expensive traditional payment methods. This real-time capability is set to revolutionize the payment landscape in the MENA region, offering faster and more secure transactions.

Enhancing Tarabut’s Technology and Compliance Offerings

The acquisition of Vyne is expected to significantly enhance Tarabut's technological infrastructure. Vyne’s advanced A2A payment technology will be integrated into Tarabut's existing platform, which already offers a robust suite of data, compliance, and financial services products. The merger of these two technologies will not only enable seamless payments for businesses but also streamline operational processes such as real-time reporting and reconciliation. The first rollout of this combined service is expected to go live in Bahrain by the end of 2024, with further expansion into Saudi Arabia and the UAE as regulatory environments evolve.

A Strategic Step for Tarabut's Long-Term Growth

Abdulla Almoayed, CEO of Tarabut, highlighted the acquisition as a key milestone in the company’s growth trajectory. "This acquisition is a pivotal step in our long-term growth strategy, allowing us to bring mature, tested payment products to the region, and providing solutions for everyday issues that merchants and consumers face when taking or making payments," said Almoayed. The acquisition also opens doors for Tarabut to pursue innovation, market penetration, and sustainable growth, reinforcing its mission to seamlessly connect financial ecosystems in the Middle East.

Expanding Vyne's Reach into the Middle East

For Vyne, the acquisition provides an opportunity to bring its innovative payment solutions to one of the fastest-growing markets in the world. Vyne’s CEO and co-founder, Karl MacGregor, emphasized the importance of entering the Middle Eastern market at a time of rapid financial transformation. "As regulations catch up, our technology can ensure both compliance and convenience. Merchants and consumers want speedy, secure, and customized payment experiences, and open banking solutions can deliver on this demand," MacGregor said. By joining forces with Tarabut, Vyne is well-positioned to capitalize on the region’s growing digital payments landscape.

Strengthening Tarabut's Global Position

This acquisition also extends Tarabut's operational footprint beyond the MENA region, establishing a stronger presence in the UK and solidifying its role as a global leader in open banking. Existing customers of both companies will benefit from enhanced services, while new customers across the Middle East will gain access to best-in-class A2A payment solutions.

Tarabut's acquisition of Vyne marks a significant milestone in the company’s efforts to remain at the forefront of financial technology in the MENA region. As open banking regulations continue to evolve across Saudi Arabia, the UAE, and the broader Middle East, Tarabut’s strengthened infrastructure and expanded service offerings will play a crucial role in driving innovation and growth. With its compliance-first approach, advanced technology, and now Vyne’s expertise, Tarabut is set to lead the future of payments in one of the world’s most rapidly developing regions.