Latin American Stripe rival dLocal acquires UK payments license
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.
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LONDON – Uruguayan payments firm dLocal has secured a UK payments institution licence, adding to the company’s growing portfolio of regulatory approvals as it continues its global expansion.
The fintech, which focuses on emerging markets, told CNBC that it has received an authorized payment institution license from the Financial Conduct Authority, Britain’s financial services regulator. This will allow it to launch UK merchants for the first time.
DLocal will employ UK tradesmen through their local entity, Larstal Limited. The subsidiary, which trades as AstroPay in the UK, was previously unable to attract domestic customers due to restrictions imposed by the FCA. DLocal said the restrictions were a result of the UK leaving the EU.
dLocal CEO Pedro Arnt told CNBC that he expects the business to differentiate itself from local payment technology rivals such as Worldpay and Checkout.com given its focus on emerging markets in places like Latin America, Africa and Asia.
“When we think about our UK merchant base, the differentiating factor for us is the geographies we serve and the only geographies we work with,” Arnt said in an interview. He added that dLocal is also targeting global merchants with a presence in the UK.
“The UK has become a hub for many global companies – even American companies, some Asian companies – for emerging market expansion, primarily in Africa and in some cases in 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.
dLocal, which holds a payment license, is looking to expand its footprint in the UK with plans to increase staff and grow the business.
Arnt said dLocal has already expanded its UK footprint with a number of senior executives such as London-based Chief Operating Officer Carlos Menendez and Chief Revenue Officer John O’Brien. Globally, dLocal currently has over 1,000 employees.
Arnt said a major benefit the UK payments license will bring to dLocal is being recognized as a “licensed partner” that companies in the developed world can rely on to manage payments in emerging markets with complex regulatory needs. DLocal currently has over 30 licenses and registrations worldwide.
Still, dLocal will be up against some stiff competition. Britain already has a fintech ecosystem with many well-capitalized players in the payments world operating there. PayPalstrip, AdieuCheckout.com, Mollie and Revolut – to name a few.
‘Not for sale’
DLocal went public on the Nasdaq in 2021 and was valued at $9 billion at the time. Since then, its market capitalization has seen a decline. As of Tuesday, the business was worth $3.4 billion. Still, shares are up nearly 40% in the past six months.
last month, This was reported by Reuters dLocal was in the process of exploring a potential sale. When asked by CNBC about the acquisition 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 level of transparency and control that he sees as “commercially positive.” Occasionally, he added, “there will be rumors that someone is interested in the asset — but I wouldn’t assume it’s a lot.”
While shareholders have a fiduciary duty to entertain buyouts, Arnt said the company is “not for sale” yet.
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