London-Based VertoFX Gains EMI License

VertoFX, a foreign exchange (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) trading and Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term startup focused on the emerging markets, has gained an electronic money institution (EMI) license from the United Kingdom regulator, the Financial Conduct Authority (FCA).

According to the regulatory registry, VertoFX's EMI license became effective from August 6th.

This license will allow the forex startup to offer various financial services, but it cannot be termed as a full lender. The startup now has plans to further boost its growth by on-boarding UK or EEA businesses.

“Acquiring our e-money license is a key element of our vision to create a more inclusive financial ecosystem for global businesses,” VetoFX’s co-founder and CEO, Ola Oyetayo said in a statement. “VertoFX has invested the last three years in connecting hundreds of people and organizations to a global system that enables fast, safe, and reliable financial transactions.”

Tapping the Untapped

The London-headquartered startup was founded in 2017 by Oyetayo and Anthony Oduwole, two ex-global bankers hailing from Nigeria. The startup became a part of Y Combinator’s 2019 winter cohort and grabbed headlines last year after raising $2.1 million in a seed round led by Accelerated Digital Ventures.

Unlike most of the market players, VertoFX is concentrating on the emerging markets and adding exotic currencies from Africa, Asia, and the MiddleEast. The startup also has an office in Lagos, Nigeria.

Though the company did not officially file any of its numbers yet, it recently revealed that its customer base jumped 270 percent year-on-year, mostly consisting of SMEs, and also benefited from the ongoing pandemic.

“The pandemic has accelerated the adoption of digital payments, prompted global business to re-assess their supply chains and the transaction cost of working with global partners as the need to reduce cost becomes paramount in the current economic climate,” Oyetayo added.