Uruguayan Fintech dLocal Secures UK Payment License Amid Global Growth
Table of Contents
You might want to know
- Why is dLocal focusing on the UK market for its expansion?
- How does dLocal differentiate itself from other payment tech firms?
Main Topic
dLocal, a payment technology firm based in Uruguay, has successfully acquired a U.K. payment institution license as part of its strategic global expansion. This achievement marks significant progress in establishing its presence in key markets worldwide, particularly focusing on emerging economies.
The company confirmed to CNBC that this license was granted by the Financial Conduct Authority (FCA), the governing body overseeing financial services in Britain. This authorization enables dLocal to onboard U.K. merchants for the first time. Through their local subsidiary, Larstal Limited, dLocal will manage these transactions under its U.K. trading name, dLocal Opco UK.
Previously, dLocal faced restrictions due to the UK's withdrawal from the European Union, which limited its ability to sign local clients. Now, CEO Pedro Arnt highlights dLocal's unique advantage: its specialization in emerging markets across Latin America, Africa, and Asia. This focus distinguishes dLocal from competitors like Worldpay and Checkout.com.
The U.K. serves as a vital hub for global companies, including those from the Americas and Asia, aiming to extend their reach into high-growth areas like Africa and Latin America. According to Arnt, "Our emphasis on underserved geographies creates a competitive edge in the UK market." By establishing a robust U.K. base, dLocal aims to increase its influence by expanding its workforce and enhancing business operations, with senior figures such as COO Carlos Menendez and CRO John O'Brien operating out of London.
The company prides itself on holding more than 30 licenses worldwide, affirming its credibility as a "licensed partner" capable of managing payments involving complex regulatory environments in emerging markets. However, dLocal acknowledges the challenge of a competitive British fintech landscape dominated by well-established players such as PayPal, Stripe, and Revolut.
Publicly listed on Nasdaq since 2021, dLocal initially achieved a $9 billion valuation, although its market value has adjusted to approximately $3.4 billion. Despite this, shares have seen a significant upward trend, rising about 40% over the past six months. Recent speculation on a potential sale further stimulated market interest, although Arnt clarified that dLocal is currently not for sale.
Arnt believes being a public company contributes positively by promoting transparency and commercial vigor. Addressing acquisition rumors, he insists that while shareholder interests must be considered, "our current status is stable, with no intention to sell."
Key Insights Table
| Aspect | Description |
|---|---|
| UK Payment License | dLocal has acquired authorization to operate within the UK, enhancing its global reach. |
| Focus on Emerging Markets | dLocal specializes in cross-border payments, primarily in Latin America, Africa, and Asia. |
| Market Valuation | Valuation reached $9 billion in 2021 but has adjusted to $3.4 billion by late 2023. |
Afterwards...
Looking to the future, dLocal's strategy to utilize its new U.K. footing as a launchpad to access emerging markets reveals an ambitious path aligned with global technological expansion. As they delve deeper into these uncharted territories, dLocal may pave the way for advanced payment solutions to cater to previously underserved regions. Insights like these could drive forward advancements and reshape current global financial ecosystems.