Eedenbull steals a march on UK fintechs with PSD2 licence approval
As a no-deal Brexit looms on the horizon, the advantages of EU passporting are not lost on fintechs outside the UK. Norway-based commercial payments company, EedenBull has been granted with Payment Services Directive 2 (PSD2) licence by the Financial Supervisory Authority of Norway. It is an extension of their existing E-Money Institution (EMI) license.
PSD2 enables open banking wherein customers can use the services of third parties to access their account information. This provides with more payment options as well as increased security. PSD2 was introduced in Europe in 2018, and a number of UK-based cross-border payments firms are already covered by it.
In particular, the ability to initiate real time payments directly from customer accounts without using a third-party credit or debit card provided a key business opportunity for non-bank payments firms. However, if the UK’s final departure from the EU happens without a deal in January 2021, existing PSD2 passporting arrangements may not apply, requiring UK firms to obtain authorisation to operate in EU countries.
Eedenbull highlighted its advantage as a passported PSD2 licence holder in its press release “With the right as an Account Information Service Provider to pull data from our customers’ bank accounts and as a Payment Initiation Service Provider initiate payments directly from bank accounts, we are in a unique position to develop and launch truly unique payment services”, Eedenbull CEO Nicki Bisgaard said.
Another fintech based out of Singapore has received an Electronic Money Institution (EMI) licence from the Financial Conduct Authority (FCA) in the United Kingdom. With this, the company can issue e-money and provide cross-border payment in the UK. It will provide B2B as well as B2C financial services and products.
Yet another fintech, TransferMate, secured a new payments licence from Mexico’s National Banking and Securities Commission as a money transmitter. Following this, the company will open an office in Mexico City. The company has presence in 51 US states, Canada, Europe, U.K., Asia, Australia and Mexico. Last year, the company received regulatory approval in six zones, including Hong Kong, Singapore and Dubai.