Brexit - The outcome of negotiations will not affect our ability to help you grow in Europe. Here’s why.

Mon, Nov 12, 2018, by Dan Whale & Danielle Herndon

need one

Brexit

Passporting

Compliance

It was predicted by few that Brexit would be frictionless, but predicted by fewer that it would be quite so complex.

At the time of writing it is still very much unknown whether the UK and the EU will agree upon a deal that can be passed through Parliament. This uncertainty can of course be unnerving for companies currently targeting EU/UK markets, and those that plan to in the future.

As such, we feel that it is important to emphasise that no matter the outcome of the Brexit negotiations, we are in an equally strong position to help you grow in Europe.

Paybase has two potential routes for operating within Europe post-Brexit. Which route we take is not entirely dependent on whether a deal is agreed or not, but rather what is included in the deal, should one be made. Therefore, we have outlined our plans as ‘Deal with Passporting’ and ‘No Deal/Deal without passporting’.

Deal with Passporting

‘Passporting’ is the mirroring of our eMoney licence across different countries within the European Economic Area. The UK’s Financial Conduct Authority acts as the contact point between us and Europe, facilitating our passporting application and distributing it to its equivalent regulators around the EU. This means that being a member of the EU has allowed financial institutions to operate throughout the EEA needing nothing more than their FCA regulated licence.

This has been an incredibly useful feature of EU membership. To put it in context, US financial services institutions/eMoney firms must become licensed in each individual state they wish to operate in. With each state having its own regulator, firms operating across the US are also subjected to far more active scrutiny, involving higher numbers of regulatory audits and site visits.

The fact that the UK has been able to operate across 31 countries using a single license is testament to the collaborative power of the EU. If a deal is negotiated between the UK and the EU which allows for the passporting of financial services, which is still a possibility, that is how Paybase will continue to take advantage of it.

No Deal/Deal without passporting

However, in the event of No Deal/Deal without passporting, the UK will not be able to passport its licence across the EEA, and passporting is not a certainty of any deal that is agreed either.

In this event, Paybase will apply for a eMoney licence in an EU member state. Being granted a licence within the EU will then allow us to passport once again across the EEA. This process has actually already begun - we have identified the country we wish to apply in and commenced with application stages. This means that should we leave the EU with No Deal or a Deal without passporting, we will still be in a position to operate in Europe without difficulty.

All businesses would agree that the uncertainty of Brexit is far from ideal, but Paybase prides itself on its operational agility. As is our approach to all operational and regulatory change, we have recognised possible outcomes and made sure that we are prepared. Paybase does not expect Brexit to negatively impact its ability to help firms grow in Europe in any way.

If you have any questions relating to how Paybase can help you grow in Europe, please contact us at hello@paybase.io.

need one
Are You Using Escrow Compliantly?

Escrow is one of the most popular payment features to appear in the platform economy. It is becoming increasingly well-utilised as awareness of the instrument grows. Escrow accounts are a great tool to safeguard transactions and payments technology...

Wed, Sep 25, 2019, by Gemma Doswell

Escrow

+ 2 More

GDPR, Compliance, FinTech
With Simplified Due Diligence set to change, innovation-driven companies like Paybase may offer the best solution

At present, EU firms are able to use SDD on customers that are deemed to have a low enough level of risk associated to them. This allows firms to postpone verifying a customer’s identity until their level of risk changes (as they make updates to the...

Wed, May 1, 2019, by Anna Tsyupko, Danielle Herndon

Due Diligence

+ 2 More

GDPR, Compliance, FinTech
GDPR – What You Need To Know

If you were not aware, Europe is set for its biggest data protection shake-up in 20 years. From May this year, the General Data Protection Regulation (GDPR) devised two years ago will be enforced. It replaces the EU-wide 1995 Data Protection Directi...

Mon, Mar 26, 2018, by Dan Whale and Danielle Herndon

GDPR

+ 2 More

Get started today_

Speak with one of our team to understand how we can help develop a better payment solution just for you.

Get in touch

Stay in the loop_

Subscribe to our mailing list to receive our popular monthly newsletter, hear the latest news from our Founders Workshop and a collection of articles, news and product updates directly into your inbox.