Adyen,
a Dutch payments firm, has received approval for a banking license in the U.K.,
signaling an expansion into the banking sector. This move allows Adyen to offer
cash advances to small and medium-sized enterprises (SMEs) in the U.K. and
ensures that it can continue to operate under the U.K.’s Temporary Permissions
Regime post-Brexit.
Adyen’s
Ambitious Strategy for Global Expansion
Adyen
already holds a banking license in the Netherlands as an acquiring bank, which
enables it to process merchant payments swiftly, bypassing the need for banking
partners, which often takes several days for settlements.
In
the U.K., Adyen’s merchants can provide services, such as bank accounts, virtual
or physical cards, cash flow and expense management.
This
banking authorization is part of Adyen’s strategy to become a full-fledged
global financial technology platform. Adyen, often considered a competitor to
U.S. payments giant Stripe, is one of Europe’s largest
technology firms with a market capitalization of approximately 23.4 billion
euros ($25 billion).
However,
Adyen faced challenges earlier, with its shares falling significantly on August
17, resulting in a substantial decrease in its market value. Despite this
setback, the company appears to be recovering and is focused on strengthening
its position in the financial technology sector.
Adyen’s
U.K. Banking License Approval vs. Revolut’s Challenges
Notably,
Adyen’s approval for a banking license in the U.K. comes as another fintech
firm in the U.K., Revolut, has faced difficulties in obtaining a banking
license from the Bank of England.
Revolut
applied for a license two years ago but encountered delays and regulatory
concerns, including issues related to its corporate culture and late filing of
accounts. Revolut has since made efforts to address these concerns and has seen
changes in its leadership.
Revolut, offers the
advantages of global accessibility, real-time transaction tracking, financial
management tools, cryptocurrency integration, and competitive forex rates.
However, it has limitations
in deposit protection, customer assistance channels, subscription fees for
premium features, cryptocurrency market volatility, and the absence of physical
branches.
Adyen,
a Dutch payments firm, has received approval for a banking license in the U.K.,
signaling an expansion into the banking sector. This move allows Adyen to offer
cash advances to small and medium-sized enterprises (SMEs) in the U.K. and
ensures that it can continue to operate under the U.K.’s Temporary Permissions
Regime post-Brexit.
Adyen’s
Ambitious Strategy for Global Expansion
Adyen
already holds a banking license in the Netherlands as an acquiring bank, which
enables it to process merchant payments swiftly, bypassing the need for banking
partners, which often takes several days for settlements.
In
the U.K., Adyen’s merchants can provide services, such as bank accounts, virtual
or physical cards, cash flow and expense management.
This
banking authorization is part of Adyen’s strategy to become a full-fledged
global financial technology platform. Adyen, often considered a competitor to
U.S. payments giant Stripe, is one of Europe’s largest
technology firms with a market capitalization of approximately 23.4 billion
euros ($25 billion).
However,
Adyen faced challenges earlier, with its shares falling significantly on August
17, resulting in a substantial decrease in its market value. Despite this
setback, the company appears to be recovering and is focused on strengthening
its position in the financial technology sector.
Adyen’s
U.K. Banking License Approval vs. Revolut’s Challenges
Notably,
Adyen’s approval for a banking license in the U.K. comes as another fintech
firm in the U.K., Revolut, has faced difficulties in obtaining a banking
license from the Bank of England.
Revolut
applied for a license two years ago but encountered delays and regulatory
concerns, including issues related to its corporate culture and late filing of
accounts. Revolut has since made efforts to address these concerns and has seen
changes in its leadership.
Revolut, offers the
advantages of global accessibility, real-time transaction tracking, financial
management tools, cryptocurrency integration, and competitive forex rates.
However, it has limitations
in deposit protection, customer assistance channels, subscription fees for
premium features, cryptocurrency market volatility, and the absence of physical
branches.
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- Source: https://www.financemagnates.com//fintech/payments/adyens-continuity-in-the-post-brexit-era-secures-a-uk-banking-license/
