DLocal is one of the most prominent payment companies in Latin America. It specializes in cross-border payments for emerging markets such as Brazil, Mexico, Colombia and its home country of Uruguay.
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LONDON – Uruguayan payments company dLocal has been granted a UK payments institution license, adding to its portfolio of regulatory authorizations as it furthers its global expansion.
The emerging markets-focused fintech company told CNBC it has obtained an authorized payments institution license from the Financial Conduct Authority, the UK’s financial services regulator. This will allow it to start working with UK merchants for the first time.
DLocal will enter UK merchants through local entity Larstal Limited. The subsidiary trades under the name AstroPay in the UK and was previously unable to provide services to customers locally due to FCA restrictions. DLocal said the restrictions were a result of the UK’s exit from the EU.
dLocal CEO Pedro Arnt told CNBC that he expects the business to stand out from domestic payment technology rivals such as Worldpay and Checkout.com, given the company’s focus on emerging markets such as Latin America, Africa and Asia.
“When we think about the merchant base in the UK, our differentiator is the areas where we serve them and those are the only areas where we work,” Arndt said in an interview. He added that dLocal also Targeted at global merchants doing business in the UK.
“The UK has become a hub for many multinational companies, even American companies and some Asian companies, to expand into emerging markets, mainly Africa and sometimes Latin America,” Arndt told CNBC.
UK expansion plans
Founded in 2016, dLocal is one of the most prominent payment companies in Latin America. It specializes in cross-border payments for emerging markets such as Brazil, Mexico, Colombia and its home country of Uruguay.
Now that it has received its payments license, dLocal is looking to expand its presence in the UK, with plans to increase headcount and grow the business.
Arnt said dLocal is already expanding its presence in the UK, with many senior executives such as chief operating officer Carlos Menendez and chief revenue officer John O’Brien based in London. dLocal currently has over 1,000 employees worldwide.
Arnt said a key benefit the UK payments license will bring to dLocal is recognition as an “authorized partner” that companies in developed countries can rely on to process payments in emerging markets with complex regulatory needs. DLocal currently has over 30 licenses and registrations worldwide.
Still, dLocal will face some stiff competition. The UK has established a mature fintech ecosystem, with a number of well-capitalized players in the payments space including PayPalstripes, AdienCheckout.com, Mollie and Revolut – just to name a few.
“Not for sale”
DLocal listed on Nasdaq in 2021 and was valued at $9 billion at the time. Since then, its market value has declined. As of Tuesday, the business was worth $3.4 billion. Still, the stock is up about 40% in the past six months.
last month, Reuters reports dLocal is exploring potential sales opportunities. When asked by CNBC about the acquisition speculation, Arnt said he didn’t want to comment on the rumors but clarified that dLocal is not currently for sale.
Arndt said that overall, as a public company, there is a level of transparency and oversight that he sees as “positive” in business terms. He added that sometimes “there are rumors that there is interest in the asset – but I don’t think that means much.”
“While shareholders have a fiduciary duty to accept the acquisition, Arndt said that at this time, the company does not intend to sell.”
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