Fintech group GSTechnologies Ltd (LSE:GST) has signed a legally binding agreement to acquire PAYPT Finance, a Canadian company holding a Canadian Money Services Business (MSB) licence.
The MSB licence held by PAYPT covers various financial activities, including foreign exchange dealing, cryptoasset dealing, money transfer services and authorisations for debit card and IBAN issuance.
The acquisition is subject to approval by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), the regulatory authority overseeing financial transactions in Canada.
Upon FINTRAC's approval of the change of control, GSTechnologies plans to rename PAYPT to Angra Global, showcasing the group's strategic intention to transform Angra into a B2B-focused Neobank.
Angra Global will merge with GSTechnologies’ existing UK-based foreign exchange and payment services company, Angra Limited, to enable the group to introduce a multicurrency e-wallet service for Angra customers.
The service will allow customers to securely store their funds within Angra Global business accounts and conduct seamless foreign exchange conversions and fund transfers through Angra's well-established banking partnerships, similar to a traditional business bank account.
Moreover, the MSB licence will allow Angra to offer its clients sterling local accounts and Euro SEPA IBAN accounts, providing a one-stop business banking solution.
GSTechnologies aims to accelerate Angra's revenues while simultaneously bolstering the Angra team to expand its B2B Neobank operations beyond the UK, serving companies of all sizes worldwide.
Tone Goh, chairman of GSTechnologies, commented: "The acquisition will enable the group to significantly expand its innovative offerings as we seek to provide a comprehensive financial service hub to all of our B2B customers.
"We look forward to updating all stakeholders on the progress of this acquisition and the subsequent transformation of Angra into a B2B Neobank in due course."