Mashreq and Neopay offer POS lending to SME merchants

Mashreq and Neo Pay launch POS lending for merchants: Our friends at Mashreq partnered with Neo Pay to introduce a point-of-sale (POS) lending solution tailored for Neo Pay’s SME merchants, according to a press release (pdf).

The new program enables SMEs to secure financing based on their sales data, offering “instant in-principle” loan approvals, Mashreq’s Head of Business Banking Rajeev Chalisgaonkar said. Loan amount can be increased based on the company’s sales growth and expansion plans, allowing access to financing for inventory, marketing and expansion, the statement said.

ICYMI- Mashreq sold a 65% stake in its payment subsidiary Neo Pay to a consortium including asset manager Arcapita Group Holdings and Turkish fintech Dgpays for USD 385 mn last month, retaining a sizable minority stake.

POS lending is gaining traction in the UAE, with payment solutions provider Magnati and Ajman Bank introducing an embedded finance solution that allows SME merchants to use real-time point of sale transaction data to access various financing options from Ajman Bank. Magnati has also teamed up with Aafaq Islamic Finance to launch a similar financial solutions platform.