Mashreq acquired a stake in banking-as-a-service provider NymCard in a move to support FinTechs in the UAE as cashless transactions surge due to the coronavirus pandemic. The bank is investing in NymCard through its venture fund that was created to support the growth of the FinTech ecosystem in the UAE. The lender, however, did not disclose the value of the deal or the size of the stake. NymCard provides a platform for large and small FinTech companies to issue a payment card with its technology. The partnership will enable FinTech companies “to launch and scale quickly within the UAE market. NymCard has dramatically reduced the cost and time it will take for FinTechs to go live in the UAE, with innovative payment cards that support their business models.
Demand for digital payments and other FinTech services has grown during the pandemic as more people use online banking services to transfer money and pay for e-commerce transactions. In the Middle East, the FinTech sector has been growing and by 2022, more than 800 FinTech companies operating in different segments such as payments, InsureTech and cyber security will raise more than $2 billion in venture capital funding to boost their growth, Mashreq said, citing data from the Middle East Institute.