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, Uruguay.
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LONDON – Uruguayan payments company dLocal has received a UK payment institution licence, adding to the company's growing portfolio of regulatory approvals as it advances global expansion.
The emerging markets-based fintech told CNBC that it had received an authorized payment institution license from the Financial Conduct Authority, which is the UK's financial services regulator. That would allow him to start on the UK merchant board for the first time.
DLocal will be on board UK merchants through local agency, Larstal Limited. The subsidiary, which trades in the UK as dLocal Opco UK, was unable to onboard clients locally due to restrictions imposed by the FCA. DLocal said the restrictions were due to the UK leaving the EU.
Pedro Arnt, CEO of dLocal, told CNBC that he expects the business to stand out from domestic payment technology rivals, such as Worldpay and Checkout.com, because it is targeting markets that ' emerging in places like Latin America, Africa and Asia.
“The differentiating factor for us when we think about our merchant base in the UK is that the areas where we service them are the same areas where we operate,” Arnt said in an interview. He said dLocal is also targeting global buyers who have a presence in the UK.
“The UK has become a hub for many global companies – even the American companies, some Asian companies – for their emerging market expansion, especially in Africa, and in some cases LatAm,” Arnt told CNBC.
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.
With a payments license now under its belt, dLocal is looking to increase its UK footprint, with plans to increase footfall and grow business.
Arnt said dLocal has already been expanding its footprint in the UK, with several of its senior executives – such as Chief Operating Officer Carlos Menendez and Chief Revenue Officer John O'Brien – based in London. Globally, dLocal currently has over 1,000 employees.
Arnt said the UK payments license is a huge advantage that gives dLocal recognition as an “authorised partner” that companies in the developed world can trust to handle payments in markets that ' come up with complex management needs. DLocal has over 30 licenses and registrations worldwide.
However, dLocal will come up against stiff competition. Britain already has an established fintech ecosystem with a number of well-capitalized players in the payments world operating there, including PayPalstrip, AlanCheckout.com, Mollie and Revolut – to name a few.
'Not for sale'
DLocal was published on the Nasdaq in 2021, receiving a valuation of $ 9 billion at the time. Its market capitalization has declined since then. As of Tuesday, the business was worth $3.4 billion. However, the stock has risen about 40% in the last six months.
last month, Reuters reported dLocal was currently investigating a possible sale. When asked about the buyout speculation by CNBC, Arnt said he did not want to comment on rumors, but clarified that dLocal is not currently for sale.
Overall, Arnt said, being a public company brings a level of publicity and visibility that he sees as “commercially positive” for him. Sometimes, he said, “rumors come up that someone is interested in the fund – but I wouldn't assume there's too much to that.”
“Although shareholders would have a fiduciary duty to entertain a takeover, Arnt said for now, “the company is not for sale. “
