Payments processing platform Adyen wins US Federal Reserve approval
Amsterdam payments processing platform Adyen has received approval from the central bank in the US of its application to establish a US federal branch licence in San Francisco, California, the company announced.
Adyen, Amsterdam’s first unicorn and one of the most valuable FinTech startups in the European Union, is one of many success stories originating in the city. Established in 2006 by entrepreneurs keen to transform payment processing, it wasn’t long before Adyen signed its first global enterprise merchant, Groupon, in 2009. In 2012, it began its global expansion, opening offices around the world. Since going public in June 2018, Adyen’s shares have increased threefold. That same year, eBay announced it would drop its long-time partner PayPal in favour of Adyen.
The opening of the US federal branch is dependent on approval by the Office of the Comptroller of the Currency (OCC). Once that happens, the branch licence will allow Adyen to function as an acquiring bank that can directly accept funds on behalf of merchants – rather than relying on third-party banks.
Its expansion will allow it to scale its operations and create a stronger set of capabilities in the payments process.
“This licence was a logical next step in Adyen’s strategy to build a single payments platform to service its merchants globally,” the announcement added.
Adyen’s platform is a modern end-to-end infrastructure connecting merchants with Visa, Mastercard and other widely used payment methods, for online, mobile and in-store channels.
Adyen has recorded increasing transactions and turnover, in part due to a rise in online payments during the COVID-19 pandemic, which has shuttered most brick-and-mortar stores. Adyen’s clients include Spotify, L’Oreal and Uber.
Amsterdam a force in FinTech
The Dutch capital has long been a leading centre for finance innovation – from establishing the world’s first stock exchange to becoming a force in FinTech. Firms Mollie, Ohpen and Bunq also built their businesses in Amsterdam.
The city’s winning combination of a strong financial sector, successful tech ecosystem, vibrant startup scene, entrepreneurial spirit and high adoption of new tech makes it the ideal base for FinTech companies.
Read more business news from around Amsterdam.