Magnati and Wio Bank Partner to Support Businesses with Embedded Finance Solutions

Payment solutions provider Magnati and UAE digital bank Wio Bank have partnered to deliver embedded finance solutions for small and medium businesses.

The collaboration integrates Wio Bank's lending and financing capabilities directly into Magnati's merchant payment platform, enabling businesses to access working capital and growth financing without leaving the payment acceptance environment they already use. Eligible merchants can apply for and receive financing through a streamlined digital process embedded within Magnati's services.

Embedded finance, where financial products are integrated into non-financial platforms and workflows, has emerged as a significant growth area in fintech. For SMEs, the model reduces the friction of applying for credit through traditional banking channels, where lengthy processes and documentation requirements often deter small business owners from seeking financing.

Magnati, a payments joint venture between First Abu Dhabi Bank and Abu Dhabi sovereign wealth fund Mubadala, operates one of the largest merchant acquiring networks in the UAE. The company processes payments for businesses across a range of sectors, giving it detailed transaction data that can inform credit risk assessments for embedded lending products.

Wio Bank brings its digital-first lending technology and SME banking expertise to the partnership. The bank has been expanding its SME product suite and building partnerships that extend its distribution beyond its own direct channels.

The partnership exemplifies the growing convergence of payments and lending in the UAE market, where providers are combining transaction data with credit products to serve the financing needs of small businesses more effectively.