DLocal is one of the most prominent payment players in Latin America. It specializes in cross-border payments for emerging markets such as Brazil, Mexico, Colombia, and its home country of Uruguay.
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LONDON — Uruguayan payments company dLocal has been awarded a UK payments institution license, adding to its growing portfolio of regulatory approvals as it expands globally.
The emerging markets-focused fintech company told CNBC it has received a Chartered Payment Institution license from the UK’s financial services regulator, the Financial Conduct Authority. This will allow us to begin onboarding UK merchants for the first time.
DLocal registers UK merchants through its local subsidiary, Larstal Limited. The subsidiary, which trades as AstroPay in the UK, was previously unable to onboard customers locally due to restrictions imposed by the FCA. DLocal said the restrictions were a result of Brexit.
dLocal CEO Pedro Arndt told CNBC that the business’ focus on emerging markets such as Latin America, Africa and Asia puts it ahead of domestic payment technology rivals like Worldpay and Checkout.com. He said he expects it to stand out as well.
“When we think about our UK distribution footprint, the differentiating factor for us is that that’s the only region we service,” Arndt said in an interview. He added that dLocal is also targeting global retailers based in the UK.
“The UK is a base for many global companies, even US companies and some Asian companies, to expand into emerging markets, primarily in Africa and in some cases Latin America,” Arndt told CNBC. spoke.
UK expansion plans
Founded in 2016, dLocal is one of the most prominent payment players in Latin America. It specializes in cross-border payments for emerging markets such as Brazil, Mexico, Colombia, and its home country of Uruguay.
dLocal now has a payments license and is looking to expand its footprint in the UK, with plans to increase its staff and grow the business.
Arndt said dLocal has already expanded its footprint in the UK, with many senior executives based in London, including chief operating officer Carlos Menendez and chief revenue officer John O’Brien. It is said that there is. dLocal currently has more than 1,000 employees worldwide.
Mr Arndt said the main benefit the UK payments license would bring to dLocal would be that it would be recognized as a ‘licensing partner’ that companies in developed countries can rely on for payments in emerging markets with complex regulatory needs. DLocal currently holds over 30 licenses and registrations worldwide.
Still, dLocal will face stiff competition. The UK already has an established fintech ecosystem with many well-capitalized players in the payments world, including PayPal, Stripe, Adyen, Checkout.com, Mollie and Revolut.
“Not for sale”
DLocal was listed on the Nasdaq in 2021 and was valued at $9 billion at the time. Since then, the company’s market capitalization has declined. As of Tuesday, the business was valued at $3.4 billion. Still, the stock has risen about 40% in the past six months.
Reuters reported last month that dLocal was considering a potential sale. Asked about acquisition speculation by CNBC, Arndt said he didn’t want to comment on rumors, but did say dLocal is not currently for sale.
Arndt said that overall, being a publicly traded company comes with a level of transparency and oversight, which he believes is “commercially positive.” From time to time, he added, “rumors will surface that someone is interested in the asset, but I don’t think it’s too much.”
Arndt said there would be a fiduciary duty to shareholders to accept an acquisition, but at this time “the company is not for sale.”
