Adyen Receives Banking License From UK Regulators
Dutch FinTech Adyen is set to begin offering banking services in the United Kingdom.
The company announced in a Thursday (Sept. 7) press release that it obtained a banking license from British regulators, replacing an earlier temporary permission.
“The authorization builds on Adyen’s global end-to-end financial technology capabilities,” the company said in the release. “As a local acquirer, Adyen ensures it retains full control of its offering and that U.K. customers continue to benefit from its capabilities of speed, flexibility and reliability.”
The license lets Adyen continue to offer its new embedded finance services to U.K. customers, a suite that includes bank accounts, virtual or physical cards, and capital services.
“Our focus is always on providing our customers with technology that helps them excel,” said Adyen Chief Risk and Compliance Officer Mariëtte Swart in the release. “The U.K. is a key market for Adyen, and we’re excited to cement our position here with this banking authorization. It will strengthen our ability to help domestic and international businesses achieve their ambitions faster.”
Adyen, which went public five years ago, is used by several high-profile companies — Microsoft, Instacart and Subway among them — as an all-in-one payments processor that delivers payments over online, mobile and in-store channels, with its infrastructure tied to Visa, Mastercard and other payment methods.
News of the banking license comes as the company deals with the fallout of an August earnings report that sent its stock price tumbling. Adyen said hiring costs and slower growth in the United States — where it competes with companies such as PayPal — had caused it to fall short of its internal targets. The firm’s stock price fell 44%.
“In some areas, the business grew at a lower rate than anticipated,” the company said in a letter to shareholders. “This was the case for our North American net revenue ... an increasingly important contributor in recent years.”
The company has been meeting with investors in a roadshow and plans to hold an investor day in November.
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