Fintech specialist GSTechnologies (GST) saw its shares almost double after it announced legally binding plans to acquire the entire issued share capital of PAYPT Finance Ltd (PAYPT), a Canadian company holding a Canadian Money Services Business (MSB) license, as part of its strategy to develop a business-to-business focused neobank.
Once the acquisition – which is subject to approval by Canadian regulators - is completed, GST plans to rename PAYPT to Angora Global, and combine it with its existing UK-based foreign exchange and payment services company, Angra Limited, before launching a multi-currency e-wallet.
Once launched, Angra’s customers will be able to securely store their funds within Angra Global business accounts and facilitate foreign exchange conversions and fund transfers through Angra's established and reliable banking partnerships, akin to a conventional business bank account.
Additionally, the PAYPT’s MSB licence will enable Angra to issue Sterling local accounts and Euro SEPA IBAN accounts to its clients, providing a comprehensive one-stop business banking solution. The MSB license held by PAYPT encompasses various financial activities, including foreign exchange dealing, cryptoasset dealing, money transfer services, and authorizations for the issuance of debit cards and IBANs.
Tone Goh, Chairman of GST, commented: "Following the successful integration of Angra in the UK into GST's fintech operations, 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. The Acquisition marks a further significant milestone in our journey.”
Elsewhere, GST’s GS20 cryptoasset exchange, launched in Lithuania, received positive feedback during its soft launch in November, with wider rollout planned for the second half of 2023. And although its application for its stablecoin to be admitted to the FCA Regulatory Sandbox’s was unsuccessful, it has instead been awarded a place on the regulator’s Innovations Pathway programme which offers a path to future regulatory authorisation, with a successful £750k fundraise in May supporting its development plans.