Uruguayan fintech firm dLocal has achieved a significant milestone by securing a U.K. payment institution license, further expanding its portfolio of regulatory approvals to support its global growth strategy.
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The company, which focuses on payment solutions for emerging markets, revealed to CNBC that it had obtained the authorized payment institution license from the Financial Conduct Authority (FCA), the regulatory body overseeing financial services in the U.K.
This new license enables dLocal to onboard U.K.-based merchants through its local entity, dLocal Opco UK. Previously, this entity was restricted from onboarding new clients due to regulations stemming from the U.K.’s departure from the European Union.
Pedro Arnt, dLocal’s CEO, emphasized the company’s unique positioning compared to domestic payment tech competitors like Worldpay and Checkout.com. He highlighted dLocal’s exclusive focus on emerging markets, including Latin America, Africa, and Asia, as its defining strength.
“Our differentiator in the U.K. lies in the geographies we serve. These are the only regions we operate in, and that focus sets us apart,” Arnt shared during an interview. He added that dLocal is also aiming to attract global merchants with operations in the U.K., particularly those seeking to expand into emerging markets.
“The U.K. serves as a hub for numerous global companies — including American and Asian firms — looking to expand into regions such as Africa and, in some cases, Latin America,” Arnt stated.
Expansion Plans in the U.K.
Founded in 2016, dLocal has become a key player in Latin America’s payment ecosystem. The company specializes in cross-border payment solutions tailored to emerging markets, with a strong presence in countries such as Brazil, Mexico, Colombia, and its home base, Uruguay.
With the FCA license now in hand, dLocal is aiming to solidify its presence in the U.K. The company plans to increase its workforce and scale its operations in the region.
Arnt pointed out that dLocal has already laid the groundwork for its U.K. expansion, with several top executives, including Chief Operating Officer Carlos Menendez and Chief Revenue Officer John O’Brien, based in London. Globally, the company employs over 1,000 people.
According to Arnt, the U.K. payment license offers a critical advantage: it positions dLocal as a “licensed partner” trusted by businesses in developed markets to manage payments in emerging economies with complex regulatory frameworks. Currently, dLocal holds more than 30 licenses and registrations across the globe.
A Competitive Landscape
Despite its achievements, dLocal faces intense competition in the U.K.’s well-established fintech sector. Major players like PayPal, Stripe, Adyen, Checkout.com, Mollie, and Revolut dominate the payments industry in the region, creating a highly competitive environment for new entrants.
Addressing Sale Speculations
dLocal went public on the Nasdaq in 2021, debuting with a valuation of $9 billion. However, the company’s market capitalization has since declined and now stands at approximately $3.4 billion. Notably, dLocal’s stock has seen a resurgence, gaining 40% in value over the past six months.
In light of recent reports from Reuters suggesting that dLocal was exploring a potential sale, Arnt addressed the speculation during his CNBC interview. While he declined to comment directly on the rumors, he clarified that dLocal is not currently up for sale.
“As a public company, there is a certain level of transparency and oversight that is commercially beneficial,” Arnt noted. “At times, rumors surface about potential interest in the company, but I wouldn’t place too much weight on those.”
He further explained that, while the company has a fiduciary responsibility to consider takeover offers if they arise, dLocal is not actively pursuing a sale at this time.
“In short, the company is not for sale,” Arnt concluded.
