DLocal, a leading payments firm in Latin America, has recently obtained a payment institution license in the U.K., marking another milestone in its global expansion journey. The company, known for its expertise in cross-border payments for emerging markets like Brazil, Mexico, Colombia, and Uruguay, has now set its sights on the U.K. market.
With the authorization from the Financial Conduct Authority (FCA), the U.K.’s financial services regulator, dLocal can onboard new U.K. merchants through its local entity, dLocal Opco UK. Previously, regulatory restrictions stemming from the U.K.’s exit from the EU had hindered dLocal’s ability to onboard clients locally.
Pedro Arnt, CEO of dLocal, believes that the company’s focus on serving emerging markets in Latin America, Africa, and Asia will set it apart from domestic payment tech competitors like Worldpay and Checkout.com in the U.K. market. He also mentioned that dLocal is targeting global merchants with a presence in the U.K., leveraging the country’s status as a hub for many international companies expanding into emerging markets.
Established in 2016, dLocal has quickly risen to prominence in the Latin American payments landscape. Specializing in facilitating cross-border transactions, the company is now looking to strengthen its presence in the U.K. by expanding its team and business operations. With over 1,000 employees globally, dLocal aims to position itself as a trusted partner for companies navigating complex regulatory environments in emerging markets.
Despite facing tough competition from established fintech players in the U.K., such as PayPal, Stripe, Adyen, Checkout.com, Mollie, and Revolut, dLocal’s extensive regulatory approvals and licenses worldwide give it a competitive edge. The recent U.K. payment institution license adds to dLocal’s credibility as a reliable partner for handling payments in challenging markets.
While rumors of a potential sale have circulated in the media, Arnt clarified that dLocal is not currently up for sale. The company’s public listing on Nasdaq in 2021, with a valuation of $9 billion at the time, has provided transparency and oversight that Arnt views as beneficial for the business. Despite fluctuations in its market capitalization, dLocal remains focused on its growth trajectory and serving the needs of global merchants expanding into emerging markets.
