Dutch fintech Adyen has announced that its UK branch has been granted a banking licence, giving it the status of an acquiring bank.
The decision will allow Adyen to process merchant payments almost instantly rather than relying on banking partners to handle the settlements. It gives the branch the same capabilities as its European operations, which received a pan-European banking licence in 2017.
The company said previously it had no plans to become a deposit-taking and full-service bank, but instead wanted the licence to give it control over the payments processes.
The new licence, which was granted by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) under Part 4A of FSMA 2000, allows Adyen to continue to offer its recently launched embedded financial product suite in the UK. This includes bank accounts, virtual or physical cards for simplified cash flow and expense management, and Capital, which provides SMBs with direct access to cash advances when they need them.
Mariëtte Swart, Adyen’s Chief Risk & Compliance Officer said. “Our focus is always on providing our customers with technology that helps them excel. The UK is a key market for Adyen and we’re excited to cement our position here with this banking authorisation. It will strengthen our ability to help domestic and international businesses achieve their ambitions faster. It’s another stride towards Adyen becoming a full spectrum global financial technology platform.
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Image source: Adyen
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