Open banking platform Tarabut has acquired British account-to-account (A2A) business payments platform Vyne.
The deal, announced Tuesday (Sept. 3), is designed to strengthen Tarabut’s ability to offer faster and more accessible and interconnected financial services in the Middle East/North Africa (MENA) region and around the world.
According to a news release, the acquisition — which officially closed Aug. 1 — comes as Saudi Arabia and the United Arab Emirates impose new regulations dealing with payment initiation services and open banking.
“As the region braces for the new financial regulations, Tarabut is poised to lead with its compliance-first approach and advanced technology offerings,” the release said. “Tarabut’s existing tech stack of data and compliance products coupled with Vyne’s payment expertise opens new doors for seamless, cardless, account-to-account payment and streamlined operational processes, such as enhanced real-time reporting and reconciliation.”
The release adds that the deal also extends Tarabut’s operational footprint to the U.K., furthering its position in the open banking world.
The deal comes on the heels of an open banking milestone in the U.K., with the country recently marking 10 million active open banking users, or 15% of the British population. Is that a good number? PYMNTS put the question to Marion King, chairperson and trustee of the U.K.’s Open Banking Ltd regulatory and advocacy group.
And though she isn’t resting on any laurels, King said she was satisfied that the government-mandated direction from the country’s leading financial institutions to make data sharing and new payment options available will usher in more success in the short term.
Part of that momentum, she told PYMNTS, will come from the next tier of banks and their business customers.
“It’s a very good number,” King said.
“We’re seeing really strong double-digit growth. And I think this is just the beginning, because you need to remember that this is only measured from the nine banks that were involved in the Competition and Market Authority’s initial open banking effort — so it could actually be higher. So double-digit growth month on month is very positive, and I think it shows pent-up demand for secure data exchange as we move forward with all of this.”
Tarabut last year announced it had raised $32 million, funds it said it hoped would help it expand in Saudi Arabia.
“Open banking is reshaping the financial landscape in KSA and the wider Middle East, and we at Tarabut Gateway are proud to be at the forefront of this innovation,” founder and CEO Abdulla Almoayed said in a news release. “This fundraise reflects the potential of open banking, our advanced technology and the trust placed in us by our partners both in KSA and globally.”
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