DLocal is one of the most important 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 obtained a UK payments institution license, adding to the company's growing portfolio of regulatory approvals as it supports global expansion.
A fintech operating in emerging markets told CNBC that it has obtained an authorized payment institution license from the Financial Conduct Authority, the UK's financial services regulator. This would allow UK sellers to begin onboarding for the first time.
DLocal will onboard UK sellers through local entity Larstal Limited. The subsidiary, which trades in the UK as AstroPay, was previously unable to accept customers locally due to restrictions placed on it by the FCA. DLocal said the restrictions were a result of the UK leaving the EU.
Pedro Arnt, dLocal's CEO, told CNBC that he expects the company to stand out from domestic payment technology rivals such as Worldpay and Checkout.com given its focus on emerging markets such as Latin America, Africa and Asia.
“The differentiating factor for us when we think about our retailer base in the UK is that we serve them and only work within them,” Arnt said in an interview. He added that dLocal also addresses its offer to sellers from around the world who are present in the UK.
“The UK has become a hub for many global companies – even US, some Asian – to expand into emerging markets, mainly Africa and in some cases Latin America,” Arnt told CNBC.
Expansion plans in Great Britain
Founded in 2016, dLocal is one of the most important payment players in Latin America. She specializes in cross-border payments for emerging markets such as Brazil, Mexico, Colombia and her native Uruguay.
Already having a payments license, dLocal is looking to expand its reach in the UK with plans to increase employment and expand its business.
Arnt said dLocal is already expanding its footprint in the UK, with many senior executives – such as chief operating officer Carlos Menendez and chief treasury John O'Brien – based in London. dLocal currently employs over 1,000 people around the world.
Arnt said the main benefit dLocal's UK payments license would bring would be recognition as a “licensed partner” that developed-country companies can trust to handle payments in emerging markets with complex regulatory needs. DLocal currently has 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 PayPalBelt, AdyenCheckout.com, Mollie and Revolut – just to name a few.
“Not for Sale”
DLocal went public on the Nasdaq in 2021, reaching a valuation of $9 billion at the time. Since then, it has seen a decline in market capitalization. As of Tuesday, the company was valued at $3.4 billion. Still, the company's stock is up about 40% in the last six months.
Last month Reuters reported dLocal was in the process of considering a potential sale. When asked by CNBC about buyout speculation, Arnt said he did not want to comment on the rumors, but clarified that dLocal is not currently for sale.
Overall, Arnt said being a public company comes with a certain level of transparency and oversight that he believes is “positive from a commercial perspective.” Occasionally, he added, “there are rumors that someone is interested in the asset, but I wouldn't assume there's much to it.”
“While shareholders would have a fiduciary duty to approve acquisitions, Arnt said that for now “the company is not for sale.”