London-based fintech startup Soldo has bagged an e-money licence from Ireland’s central bank.
The firm, currently licensed by the Financial Conduct Authority (FCA), can offer financial service across all European markets utilising its passporting rights.
However, the facility is soon going to end with Britain ceasing to be part of the European Union (EU) bloc.
This can turn out be a major source of concern for Soldo, which is said to get half of its business from EU.
The latest decision is said to offer the firm a hedge against the impact of Brexit.
Soldo co-founder and CEO Carlo Gualandri said: “It’s crazy to think we’ve been forced to work for a year and a half on a hugely complex project, mostly duplicating something that we had already, to prepare our business for something that may or may not happen.”
According to Gualandri, the firm’s financial activities for EU clients will be managed from Ireland after March.
The Irish business will initially have a headcount of around 10, which includes both new hires and relocations.
Commenting on the move, Soldo said: “The E-Money licence enables Soldo+ to operate its services smoothly during a time of unprecedented turbulence in the business and political sphere and demonstrates the company’s commitment to providing uninterrupted enterprise level financial technology services for businesses of all sizes.
“With the licence the company will be able to issue payments in Ireland across the European Union under passporting rights.”
In addition to London, Soldo has branches in Rome, Milan and Dublin. The firm has a customer base of 50,000 in Europe and the UK.
Recently, Alipay was awarded an e-money licence in Luxembourg to serve European customers after Brexit.
Meanwhile, Google received an e-money licence in Lithuania.