Weavr, a UK-based Banking-as-a-Service (BaaS) solutions provider, has received an Electronic Money Institution (EMI) license from the Malta Financial Services Authority (MFSA). This license marks a significant step for Weavr, enabling it to offer a comprehensive domiciled International Bank Account Number (IBAN) service across Europe.
The MFSA’s decision came after an extensive review of Weavr’s operating model, which is notably “embeddable by design.” This model is tailored to support B2B Software-as-a-Service (SaaS) companies, providing them with a range of financial products including cards, accounts, and global fund transfer networks. Weavr’s strategy is to enhance these offerings through a partnership with Visa, which has been active since June of the previous year.
Weavr CEO Alex Mifsud highlighted that the EMI license will allow B2B SaaS businesses to integrate embedded finance into their services more easily, aiding in tasks such as accounting, billing, project management, and HR management. Mifsud emphasized that the license comes at a time when European regulators are increasingly focused on the risks associated with the BaaS model, particularly the challenge of maintaining oversight over various fintech entities and embedded financial products.
Weavr’s statement asserts that its operating model has been specifically designed to address these regulatory concerns, suggesting that the company’s approach offers a safer and more compliant framework for embedded finance. This positioning aims to reassure both regulators and potential clients about the robustness and security of its financial services infrastructure.
Source: fintechfutures.com
