SUMMARY
- Dutch titan Adyen secures UK banking license.
- Move enables instant merchant payments, bypassing banking middlemen.
- Adyen's triumph juxtaposed with Revolut's licensing challenges.
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Dutch payment heavyweight Adyen has bagged a banking license in the UK, diving deeper into the banking universe. This new feather in their cap permits Adyen’s UK merchants to float cash advances to local small and medium businesses. More than that, this license is Adyen’s golden ticket to keep operating smoothly under the UK’s Temporary Permissions Regime, ensuring they offer services consistent with their EU operations, even post-Brexit.
Already wearing the badge of an acquiring bank in the Netherlands, Adyen has the superpower to zap merchant payments in a flash. Gone are the days when they'd wait for other banking buddies to settle the accounts, a process that sometimes felt longer than a weekend without Wi-Fi. Merchants in the UK, under Adyen’s wing, are already in the cool club, offering everything from bank accounts and snazzy virtual cards to mastering cash flow and managing expenses.
Mariëtte Swart, Adyen’s top legal eagle, voiced her enthusiasm: “The UK’s a big deal for us and this banking badge solidifies our stand here.” She hinted at Adyen’s bigger dreams of morphing into a global financial tech juggernaut. In the world of payments, if Stripe from the US is the popular kid, Adyen's the European prodigy with a whopping valuation of $25 billion. Though they faced a hiccup when their revenue growth took a teeny snooze, they've been on a recovery path.
However, it wasn't all rainbows. August 17 was a gloomy day for Adyen’s stocks, plunging by a heart-stopping 39%. In the backdrop, Adyen's UK banking license win casts a shadow over the UK’s fintech giant, Revolut. Unlike the swift Adyen, Revolut has been wading through molasses, waiting for its license for what feels like forever, grappling with paperwork delays and some internal corporate drama. Though they've made efforts to turn the ship around, it's a race against time.
Note: A previous report goofed up the date of Adyen’s stock drop. It was August 17.
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