Fransabank buys stake
in Pinpay for $2.5 million

Bank to use the service

Fransabank will invest $2.5 million in Pinpay, a local provider of mobile payment services, said a source close to the deal.

Under the deal, Fransabank will also be using Pinpay’s services for its customers. The bank will stop operating the Simba mobile payment application provided by Viamobile.

Fransabank’s $2.5 million stake will increase PinPay’s capital to LL13 billion ($8.6 million). Pinpay’s other shareholders are Bank Audi, Bankmed, and Middle East Venture Partners (MEVP). Bank Audi and Bankmed also benefit from Pinpay’s services. After Fransabank’s acquisition the shareholders will hold roughly equal stakes in the company.

The source said that five additional banks will join the Pinpay payment service before the end of 2016, but they will not be contributing to its capital.