(Bloomberg) -- Western Union Co. has acquired a 15% stake in STC Pay, an arm of Saudi Telecom Co. that is focused on digital payments and financial technology services.

Western Union purchased the stake for $200 million, the Saudi-based telecom operator said in a statement Saturday, valuing the company at about 5 billion riyals ($1.3 billion).

STC Pay is a financial company that launched a digital wallet mobile application in 2018. The e-platform provides digital and financial services to individuals and companies, and facilitates financial transactions and payments.

Saudi Telecom, also known as STC, said the investment is to “finance STC Pay’s capital and to support long-term expansion plans.”

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