In this article, Uruguayan payments firm dLocal has obtained a U.K. payment institution license, expanding its regulatory authorizations for global expansion. The fintech company focused on emerging markets disclosed to CNBC that it received an authorized payment institution license from the Financial Conduct Authority, the financial services regulator in the UK. This license enables dLocal to onboard new U.K. merchants.
To onboard U.K. merchants, dLocal will utilize a local entity named dLocal Opco UK. Previously, the company faced restrictions imposed by the FCA that prevented it from onboarding new clients locally. These restrictions were a consequence of the UK’s departure from the EU. Pedro Arnt, the CEO of dLocal, expressed confidence that the company’s emphasis on emerging markets in regions like Latin America, Africa, and Asia will differentiate it from domestic payment tech competitors such as Worldpay and Checkout.com.
Arnt highlighted that dLocal serves merchants in specific geographies, focusing solely on those regions. He mentioned that the UK serves as a hub for global companies, including American and Asian firms, expanding into emerging markets, particularly in Africa and Latin America. Established in 2016, dLocal is a prominent payment player in Latin America, specializing in cross-border payments for countries like Brazil, Mexico, Colombia, and Uruguay.
With the acquisition of a payment license, dLocal aims to enhance its presence in the UK by expanding its workforce and business operations. The company has been bolstering its UK footprint, with key executives like COO Carlos Menendez and CRO John O’Brien based in London. Globally, dLocal employs over 1,000 individuals.
The U.K. payment license is expected to position dLocal as a trusted “licensed partner” for handling payments in emerging markets with complex regulatory requirements. Currently holding more than 30 licenses and registrations worldwide, dLocal faces competition from established fintech players in the UK, including PayPal, Stripe, Adyen, Checkout.com, Mollie, and Revolut.
Having gone public on the Nasdaq in 2021 with a valuation of $9 billion, dLocal’s market capitalization has since decreased to $3.4 billion as of Tuesday. Despite this decline, the company’s stock has shown a 40% increase over the past six months. Recent reports suggested dLocal was exploring a potential sale, but Arnt declined to comment on buyout rumors, affirming that the company is not currently up for sale.
Arnt emphasized the benefits of being a public company, citing transparency and oversight as positive aspects for dLocal commercially. While acknowledging the possibility of takeover discussions due to fiduciary duties to shareholders, he reiterated that the company is not actively seeking a sale at present.
