September 8, 2023: On Thursday, Dutch payments firm Adyen said it won approval for a banking license in the U.K., which marks a deeper push from the company into the banking sector.

The firm said its license would permit merchants to offer cash refinements to little and medium-sized businesses in the U.K.

Crucially, Adyen said the license would enable it to continue operating under the U.K.’s Temporary Permissions Regime, where it can provide services in line with its E.U. business after Brexit.

Adyen already has a license in the Netherlands as an acquiring bank. In this capacity, the company can process merchant payments nearly instantly, rather than depending on banking partners to handle settlements, which can often take several days.

Adyen’s U.K. merchants can offer customers bank accounts, virtual or physical cards, cash discharge, and expense management.

“The U.K. is a key market for Adyen, and we’re excited to cement our position here with this banking authorization,” said Mariëtte Swart, Adyen’s chief legal and compliance officer.

“It will support our ability to help domestic and international businesses achieve their ambitions faster. It’s another stride towards Adyen becoming a full spectrum global financial technology platform.”

A competitor to U.S. payments giant Stripe, Adyen is one of Europe’s largest technology firms, with a market capitalization of 23.4 billion euros. The company has been recovering after its first-half earnings numbers showed the gradually earnings increase on record.

The company’s shares fell as much as 39% on August 17, wiping 18 billion euros from Adyen’s market value. Shares of Adyen closed down more than 2% on Thursday in Amsterdam.

Adyen’s permit approval comes as one of the U.K.’s biggest fintech firms, Revolut, has been struggling to obtain a license from the Bank of England. Revolut applied for a permit two years ago but has faced delays. Regulators have had numerous concerns, including the company’s late filing of accounts and internal problems with corporate culture.

Revolut says it has worked to improve its corporate culture internally. The company also witnessed its chief economic officer, who was at the helm during its delayed accounts, leave earlier this year.