World Stock Watch

Uruguayan Fintech Giant Expands Global Reach with UK Payment License

In a significant milestone, dLocal, a leading payments firm from Uruguay, has secured a payment institution license from the UK’s Financial Conduct Authority (FCA). This regulatory approval enables the company to onboard UK merchants for the first time, further solidifying its global expansion.

Emerging Markets Focus Sets dLocal Apart

dLocal’s CEO, Pedro Arnt, believes the company’s focus on emerging markets in Latin America, Africa, and Asia will differentiate it from domestic payment tech rivals like Worldpay and Checkout.com. “We serve merchants in geographies that others don’t,” Arnt emphasized. The company is also targeting global merchants with a UK presence, leveraging the country’s position as a hub for emerging market expansion.

Boosting UK Footprint and Global Ambitions

With the payment license in hand, dLocal plans to increase its UK headcount and grow its business. The company has already established a strong presence in the UK, with senior executives like Chief Operating Officer Carlos Menendez and Chief Revenue Officer John O’Brien based in London. Globally, dLocal boasts over 1,000 employees.

Recognition as a Trusted Partner

Arnt highlighted the significance of the UK payment license, stating that it recognizes dLocal as a “licensed partner” that companies in the developed world can trust to handle payments in emerging markets with complex regulatory needs. The company now holds over 30 licenses and registrations worldwide.

Competing in a Crowded Fintech Ecosystem

dLocal will face stiff competition in the UK’s established fintech ecosystem, where well-capitalized players like PayPal, Stripe, Adyen, Checkout.com, Mollie, and Revolut operate. Despite this, the company remains confident in its unique value proposition and growth prospects.

Public Listing and Market Performance

dLocal went public on the Nasdaq in 2021, achieving a $9 billion valuation. Although its market capitalization has declined since then, the company’s stock has risen about 40% in the past six months. When asked about buyout speculation, Arnt clarified that dLocal isn’t currently for sale, citing the benefits of being a public company, including transparency and oversight.