The Adyen logo displayed on a smartphone.
Rafael Henrique | SOPA Images | LightRocket via Getty Images
Dutch payment giant Adyen recently obtained a banking license in the U.K., marking a significant expansion into the banking sector.
This new license grants Adyen the ability to offer cash advances to small and medium-sized enterprises in the U.K.
Additionally, the license allows Adyen to continue operating under the U.K.’s Temporary Permissions Regime after Brexit, ensuring seamless service provision aligned with its EU business.
Adyen is already a licensed acquiring bank in the Netherlands, enabling it to process merchant payments rapidly without relying on banking partners for settlements.
Within the U.K., Adyen’s merchants can provide customers with bank accounts, virtual or physical cards, as well as cash flow and expense management services.
“The U.K. market is crucial for Adyen, and we are thrilled to solidify our presence here with this banking authorization,” said Mariëtte Swart, Adyen’s chief legal and compliance officer.
“This license strengthens our ability to help domestic and international businesses achieve their goals more efficiently. It is a significant step towards Adyen becoming a comprehensive global financial technology platform.”
Adyen, a major competitor to U.S. payments giant Stripe, is one of Europe’s largest technology companies, boasting a market capitalization of 23.4 billion euros ($25 billion). Despite recent issues with slower revenue growth, the company has been making a recovery.
In fact, Adyen’s first-half earnings results led to a 39% decline in company shares on Aug. 31, resulting in an 18 billion euro decrease in market value. However, Adyen shares were only down around 1% on Thursday.
Adyen’s permit approval comes at a time when another prominent fintech firm in the U.K., Revolut, has been facing challenges in obtaining a banking license from the Bank of England. Revolut has been waiting for two years to secure a license, encountering multiple delays.
The Bank of England has raised concerns regarding Revolut’s late filing of accounts and internal issues related to corporate culture.
In response, Revolut has taken steps to improve its corporate culture internally and has seen its chief financial officer, who was in charge during the delayed accounts, depart earlier this year.
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