Prime Highlights:
Uruguayan payments company dLocal has been granted a payment institution license by the UK’s Financial Conduct Authority (FCA), allowing it to onboard UK-based merchants.
The license is part of more than 30 international regulatory approvals securing dLocal’s expansion into new markets.
dLocal focuses on the emerging markets in Latin America, Africa, and Asia, unlike other local players, such as Worldpay and Stripe.
Key Background:
dLocal has recently been licensed by the UK Financial Conduct Authority (FCA) as an authorized payment institution. The fintech company is one of the leading Uruguayan companies that specialize in cross-border payments for emerging markets. It further expanded the company’s global reach, marking the first time U.K.-based merchants were integrated into its network.
This new license comes as an addition to the over 30 licenses that the company has distributed all over the world, embracing licenses for emerging markets like Brazil, Mexico, and Colombia. It aims to enter the UK fintech sector, which is already characterized by strong competition from major players such as Worldpay, Stripe, and Checkout.com, through its UK subsidiary, Larstal Limited, operating as dLocal Opco UK.
CEO Pedro Arnt said that the focus on emerging markets — Latin America, Africa, and Asia — is what sets dLocal apart from its U.K. peers. Many global companies with a presence in London, he said, are eager to expand into Africa and Latin America, and therefore into dLocal’s services. In addition, the increasing profile of the company’s U.K. business, including several senior leaders based in London, will play a key role in this expansion.
The UK payment license is a door opener to the new market for dLocal and increases its reputation as a reliable partner when dealing with complex regulatory requirements in emerging markets. This is in line with dLocal’s plans for increasing its workforce in the UK and expanding business operations. The dLocal firm is seeing competition by other firms who have specialized in the area of payment technology, however through niche market specialization and a set history in cross-border payments, the firm continues to stay on top. With an initial public offering in 2021 and valued at $9 billion the firm today enjoys a market cap of $3.4 billion, representing a dynamic development curve.
