Luxembourg-based FinTech Mangopay has been granted an electronic money institution (EMI) license by the U.K. Financial Conduct Authority (FCA), the company announced in a Wednesday (Nov. 1) blog post.
This license allows the business-to-business (B2B) payment infrastructure provider, which supports over 2,500 platforms and marketplaces worldwide, to offer its suite of services to U.K.-based firms, including issuing electronic money, facilitating digital payments, and providing a range of other payment solutions.
Commenting on the news, Mangopay CEO Romain Mazeries expressed the company’s dedication to providing marketplaces and platforms with tailored, modular solutions that simplify payments, adding that “this FCA [authorization] will unlock further innovation in the [U.K.] market.”
Luke Trayfoot, Mangopay’s group chief revenue officer, who heads the company’s U.K. subsidiary, also emphasized the importance of the FCA license in achieving the company’s growth plans as it looks to expand its business footprint.
Mangopay’s e-money license comes after another EU-based FinTech firm, Adyen, obtained a banking license from U.K. regulators in September, replacing an earlier temporary permission it had.
The license allows Adyen, which is used by several top firms such as Microsoft and Instacart, to continue to offer its new embedded finance services to U.K. customers. These services include features like bank accounts, virtual or physical cards, and capital services.
Adyen Chief Risk and Compliance Officer Mariëtte Swart echoed similar sentiments about the potential of the U.K. market, saying at the time that the banking authorization will help cement Adyen’s position in the market as well as “strengthen our ability to help domestic and international businesses achieve their ambitions faster.”
Revolut, on the other hand, has not been so lucky, and continues to navigate the complexities of obtaining a banking license in its home turf since applying for it in January 2021.
As PYMNTS recently reported, the U.K.-based FinTech giant has encountered several hurdles since, with one of the primary challenges being its substantial customer base of almost 8 million users. This has prompted regulatory scrutiny concerning the strength of its operations and compliance, especially when compared to recently licensed lenders.
But despite these challenges, Revolut maintains a positive outlook on its chances of acquiring a U.K. banking license and adding to the 70-plus licenses it has already secured across various financial services, including the EU banking license granted by the Bank of Lithuania in 2021.