In a
significant development for the UK’s post-Brexit financial landscape,
Worldline, the French-based payments processor, has received Payment
Institution Authorization from the Financial Conduct Authority (FCA). This paves
the way for Worldline to bolster its UK operations and enhance its service
offerings for merchants both within the country and internationally.
Worldline’s
new status comes as an important move following years of providing payment
solutions to UK and global clients. The company’s consolidation of merchant
activities within the UK aims to amplify its investment in services tailored to
the local market. The authorization by the FCA not only aligns Worldline with
UK regulatory standards but also ensures uninterrupted services amid the
closing of the Temporary Permission Regime.
With this license,
Worldline can now offer domestic processing capabilities, addressing the market’s
changing needs with its fully in-house acquiring services. This move is
expected to enhance transaction transparency and reliability for Worldline’s
customers.
“Worldline
is committed to playing an important role in the post-Brexit payments landscape
of the UK,” said Lee Jones, the CEO of Worldline Merchant Services UK.
An expanded
UK-based team of Worldline professionals will utilize their market expertise to
assist merchants in optimizing payment operations and costs. The new licence
will enable merchants to benefit from optimized scheme fees and, with the
assistance of advanced AI technologies, experience improved authorization
rates.
“Paramount
for our local service scope and excellence, it sets us apart from many
international competitors by bolstering our presence and enhancing our service
capabilities, while providing more choice for UK merchants,” Jones added.
Market Valuation
Challenges for Worldline
Worldline recently
announced a
reduction in its sales forecast, causing concern within the European
financial technology sector. The news led to a sharp decline in Worldline’s shares, resulting in a loss of over half of its market capitalization, approximately €3.8 billion, and
leaving the company with a valuation of approximately €2.7 billion. This
significant devaluation reflects a growing trend of investor skepticism towards
the long-term viability of fintech enterprises in Europe.
This
unsettling update from Worldline arrived closely on the heels of a similar
announcement by CAB Payments Plc, a UK-based company, which experienced a
dramatic slump of 72% in its stock value following a downward revision of its
revenue outlook. Furthermore, in August, the payment firm Adyen
NV was subjected to a market sell-off after posting disappointing
bi-annual results. These events have cumulatively contributed to a
discernible shift in investor sentiment, marked by diminishing patience with
the performance of fintech entities across Europe.
In light of
these developments, data from KPMG’s Pulse of Fintech report is particularly
telling. While fintech investments totaled $63.2 billion over 2,885 deals in
the latter half of 2022, these figures dropped
to $52.4 billion through 2,153 deals in the first half of 2023. The report
underscores a notable contraction in the sector, both in terms of capital
inflow and deal volume.
In a
significant development for the UK’s post-Brexit financial landscape,
Worldline, the French-based payments processor, has received Payment
Institution Authorization from the Financial Conduct Authority (FCA). This paves
the way for Worldline to bolster its UK operations and enhance its service
offerings for merchants both within the country and internationally.
Worldline’s
new status comes as an important move following years of providing payment
solutions to UK and global clients. The company’s consolidation of merchant
activities within the UK aims to amplify its investment in services tailored to
the local market. The authorization by the FCA not only aligns Worldline with
UK regulatory standards but also ensures uninterrupted services amid the
closing of the Temporary Permission Regime.
With this license,
Worldline can now offer domestic processing capabilities, addressing the market’s
changing needs with its fully in-house acquiring services. This move is
expected to enhance transaction transparency and reliability for Worldline’s
customers.
“Worldline
is committed to playing an important role in the post-Brexit payments landscape
of the UK,” said Lee Jones, the CEO of Worldline Merchant Services UK.
An expanded
UK-based team of Worldline professionals will utilize their market expertise to
assist merchants in optimizing payment operations and costs. The new licence
will enable merchants to benefit from optimized scheme fees and, with the
assistance of advanced AI technologies, experience improved authorization
rates.
“Paramount
for our local service scope and excellence, it sets us apart from many
international competitors by bolstering our presence and enhancing our service
capabilities, while providing more choice for UK merchants,” Jones added.
Market Valuation
Challenges for Worldline
Worldline recently
announced a
reduction in its sales forecast, causing concern within the European
financial technology sector. The news led to a sharp decline in Worldline’s shares, resulting in a loss of over half of its market capitalization, approximately €3.8 billion, and
leaving the company with a valuation of approximately €2.7 billion. This
significant devaluation reflects a growing trend of investor skepticism towards
the long-term viability of fintech enterprises in Europe.
This
unsettling update from Worldline arrived closely on the heels of a similar
announcement by CAB Payments Plc, a UK-based company, which experienced a
dramatic slump of 72% in its stock value following a downward revision of its
revenue outlook. Furthermore, in August, the payment firm Adyen
NV was subjected to a market sell-off after posting disappointing
bi-annual results. These events have cumulatively contributed to a
discernible shift in investor sentiment, marked by diminishing patience with
the performance of fintech entities across Europe.
In light of
these developments, data from KPMG’s Pulse of Fintech report is particularly
telling. While fintech investments totaled $63.2 billion over 2,885 deals in
the latter half of 2022, these figures dropped
to $52.4 billion through 2,153 deals in the first half of 2023. The report
underscores a notable contraction in the sector, both in terms of capital
inflow and deal volume.
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- Source: https://www.financemagnates.com//fintech/fca-greenlights-worldline-for-the-uk-fintech-expansion/
