Latin American Stripe rival dLocal acquires UK payments license

LONDON – Uruguayan payments company dLocal has secured a UK payment institution license, adding to the company’s growing portfolio of regulatory licenses as it fuels global expansion.

The emerging markets-focused fintech told CNBC it had secured an authorized payment institution license from the Financial Conduct Authority, the UK’s financial services regulator. That would make it possible to onboard British traders for the first time.

DLocal will onboard UK traders through a local entity, Larstal Limited. The subsidiary, which trades as dLocal Opco UK in the UK, was previously unable to onboard customers locally due to restrictions placed on it by the FCA. DLocal said the restrictions were the result of Britain’s departure from the EU.

Pedro Arnt, CEO of dLocal, told CNBC that he expects the company to differentiate itself from domestic payment technology rivals such as Worldpay and Checkout.com, given its focus on emerging markets in countries such as Latin America, Africa and Asia .

“The differentiator for us when we think about our UK base of merchants is that the regions where we serve them, and those are the only regions we serve,” 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 the US companies and some Asian companies – for their expansion in emerging markets, especially in Africa and in some cases in Latin America,” Arnt told CNBC.

Founded in 2016, dLocal is one of Latin America’s most prominent payment players. It specializes in cross-border payments for emerging markets such as Brazil, Mexico, Colombia and home country Uruguay.

Now that a payment license is available, dLocal is looking to expand its UK footprint, with plans to increase headcount and grow revenue.

Arnt said dLocal has already expanded its UK footprint, with several of its senior executives – such as Chief Operating Officer Carlos Menendez and Chief Revenue Officer John O’Brien – based in London. dLocal currently has more than 1,000 employees worldwide.

Arnt said a major benefit of the UK payments license dLocal is its recognition as a ‘licensed partner’ that businesses in the developed world can rely on to handle payments in emerging markets with complex regulatory needs. DLocal now has more than 30 licenses and registrations worldwide.

Still, dLocal will face stiff competition. Britain already has an established fintech ecosystem with numerous well-capitalized payments players operating there PayPalstripe, AdyenCheckout.com, Mollie and Revolut – just to name a few.

DLocal went public on the Nasdaq in 2021 and posted a valuation of $9 billion at the time. Since then, it has seen its market capitalization decline. As of Tuesday, the company was worth $3.4 billion. Still, the stock is up about 40% over the past six months.

Last month, Reuters reported this dLocal was investigating a possible sale. When asked by CNBC about buyout speculation, Arnt said he didn’t want to comment on rumors, but he clarified that dLocal is not currently for sale.

Overall, Arnt said, being a publicly traded company comes with a level of transparency and oversight that he considers “positive” from a commercial perspective. Sometimes, he added, “rumors will come out that someone is interested in the property, but I don’t think there’s too much going on there.”

While there would be a fiduciary duty for shareholders to facilitate acquisitions, Arnt said that “the company is not for sale for now.”