Investment funds managed by Morgan Stanley Expansion Capital have announced a USD 20 million investment in NovoPayment to assist the latter’s expansion of commercial partnerships. By providing this USD 20 million capital to NovoPayment, investment funds managed by Morgan Stanley Expansion Capital intends to further support the company in its development strategy and enable it to serve its customers’ needs, demands, and preferences, while remaining compliant with regulatory requirements.

Morgan Stanley’s financial investment When commenting on the announcement, representatives from NovoPayment underlined that the investment obtained from Morgan Stanley Expansion Capital is set to further assist their company’s continued service expansion to scale its customer base and amplify its impact in the markets it serves. Additionally, considering the current financial services landscape and how it is set to further evolve, NovoPayment looks forward to solidifying its position in the Embedded Finance market by minimising complexities and increasing efficiency. The deal with NovoPayment comes after Morgan Stanley acquired a stake in Sokin, a UK-based payments neobank.

The move allowed Sokin to gain access to resources and expertise that the company could leverage to accelerate its growth trajectory and better serve its customers. Also, the decision to invest in Sokin could be attributed to the latter’s capabilities and comprehensive technology platform, which was well-suited to support enterprises in simplifying payments across geographies. NovoPayment’s digital offering Since its launch, NovoPayment has been focusing its efforts on allowing banks, financial institutions, neo-banks, digital merchants, and fintech companies to provide intuitive digital financial and payment solutions, optimising the experience for customers, as well as operational margins.

The company’s business and delivery model merges simple-to-integrate services with scalable and compliant infrastructure. Through this, NovoPayment aims to bridge market gaps and advance digital initiatives. In addition, the company’s platform delivers a suite of solutions, including digital wallets, instant issuance of deposit accounts and virtual cards to RTP, cross-border transfers, digital lending, and cash management.

Currently, NovoPayment’s services are available across 15 markets across Latin America, the Caribbean, and the US. Moreover, the beginning of February 2024 saw NovoPayment partnering with Mastercard to expand its operations in Mexico. Through the Mastercard Network Enablement Partner (NEP) program, the company obtained a certification allowing it to process Mastercard payment transactions in the region.

The certification came as an addition to existing ones in Chile, Colombia, Ecuador, Peru, and Venezuela, in which NovoPayment operated as a card issuer processor. Source: Link .