25 November 2020
Agreement with Western Union Riyadh, November 2020

Under the sponsorship of the Governor of SAMA, Dr. Ahmed bin Abdul Karim Al-Khulaifi, stc Group signed an agreement with Western Union to sell a minority share in Digital Payments Company “stc pay” with 15%, at a value of 200 million dollars, equivalent to a valuation of 5 billion riyals for the company.

We are proud that stc pay, the 100% owned subsidiary of stc Group, is the first financial technology company licensed by SAMA in the Kingdom, the largest digital wallet in MENA, and the first Unicorn company with more than 4.5 million users. It was established to achieve Kingdom’s Vision 2030 and in pursuit of its objectives in supporting the growth of the national economy and the financial sector development program.

Western Union’s investment aims to fund stc pay’s capital and support long-term expansion plans, which will reflect positively on the operational and financial aspects in terms of promoting the company’s growth and developing its resources. The completion of the agreement is conditional on obtaining all relevant regulatory approvals to maximize interest and mutual benefit.

This agreement is a major step in digital payments as the network within Western Union includes more than 200 countries that are available to send and transfer money in more than 75 countries globally. This collaboration will facilitate transactions and make them quick, easy and secure.

His Royal Highness Prince Muhammad bin Khalid Abdullah Al-Faisal the Chairman of the Board of Directors of stc Group said: We are proud that our work contributes to the success of the Kingdom’s vision and ambition towards a prosperous and diversified economy.

 

The decision of a company like Western Union at present to invest in foreign direct investment in stc pay is a great motivation for us and this reflects stc’s position as a digital enabler and a regional leader in information and communication technology.

 

We celebrate achieving the first unicorn company in Saudi Arabia and the first unicorn financial technology company in the Middle East.

 

Nasser bin Suleiman Al-Nasser stated: “We aspire as a digital enabler and pioneers in the digital transformation to have a pivotal role in SAMA’s vision through implementing several initiatives that support innovation and digital services development. Modern technologies are one pillar of the group’s strategy2.0

He added, “We are proud that stc pay was not only the first unicorn company but was also recognized as one of the national leading companies for financial technology in a very short time, which motivates us to do more to introduce new products that enrich customers experience”.

 

Hikmet Ersek CEO and President of Western Union added: “stc pay has rapidly developed a pioneering regional digital payments service over the past 2 years and has been a very successful digital partnership with Western Union. We believe stc pay is well-positioned for the continued expansion of digital payments and look forward to the opportunity to expand our relationship in the future”.

post image