Euronet announced that it has been licensed by the UK financial regulator FSA to provide payment services directly. This marks significant progress for Euronet’s European expansion plan since now it no longer needs a sponsor bank in each European market where it operates.
This authorization covers a broad range of services, including ATM and POS transaction acquiring. This authorization allows Euronet to apply for direct membership with the major card schemes. Upon receipt of this authorization, Euronet applied for and received membership with the two major card schemes, Visa and MasterCard, for ATM transaction acquiring. The combination of the authorization by the FSA and membership with the major card schemes allows Euronet to directly process ATM debit and credit card transactions throughout most of Europe, without the requirement of a sponsor bank. Subject to business opportunities, Euronet intends to apply for direct membership with the major card schemes for POS merchant acquiring.
“The significance of this development is monumental as it reflects a paradigm shift in our business. Previously, anytime we deployed ATMs in new markets we had to engage in lengthy negotiations to secure a sponsor bank. Now, with an acquiring license and direct card scheme membership, an acquiring sponsor bank is no longer required, allowing Euronet to directly acquire transactions on our independently deployed ATM networks and settle directly with the card schemes,” stated Nikos Fountas, Senior Vice President and Managing Director of Euronet’s Europe EFT Division. “Moreover, this license enables us to expedite time-to-market entry, increases our flexibility in product development and creates the opportunity to expand cross-selling synergies between our different segments,” added Mr. Fountas.
The European payments market is becoming increasingly competitive as major international players are now able to operate throughout the market with a single license.
Read more about the press release here: http://www.greensheet.com/newswire.p…story&id=24413