Vancouver-based embedded financial service platform VoPay has established a partnership with New Jersey’s Cross River Bank and is taking its first step towards a European expansion.
“The CTA program is a vital step, but it’s just the beginning of our European adventure.”
VoPay says the partnership it established last week with Cross River Bank, a technology infrastructure provider that offers embedded financial solutions, accelerates its expansion into the United States (US) and will give it access to the US banking and payment network infrastructure.
The FinTech startup also plans to use London, United Kingdom (UK) to anchor its European expansion and has been accepted into the United Kingdom FinTech branch of the Canadian Technology Accelerators (CTA) program.
The CTA program will give VoPay and six other participants briefings on entering the UK market, access to potential investment, and tailored mentoring from local industry experts.
“Our journey through the US and now into Europe, starting with the UK, reflects our dedication to innovation, inclusion, and the transformative power of embedded financial services,” VoPay CEO Hamed Arbabi said in a statement. “The CTA program is a vital step, but it’s just the beginning of our European adventure.”
VoPay, founded in 2014 by Arbabi, describes itself as a FinTech platform that allows companies to embed financial services and payment capabilities into existing applications, products, and services. Through its API integration, it supports electronic funds transfers, Interac e-Transfer for businesses, and Visa’s direct money transfer service.
As it expands into the US, VoPay says collaboration with Cross River will provide it with access to new networks and payment rails, while Cross River’s US financial regulation expertise will help VoPay ensure it is meeting various security and compliance standards.
“Cross River’s advanced technological framework and deep regulatory expertise are invaluable as we endeavour to meet the evolving needs of our customers in today’s fast-paced financial landscape,” Arbabi said.
VoPay points to the UK’s favorable regulatory framework, namely open banking policies, that make it an attractive starting point for its European expansion plans.
While London has long been known as a hub for FinTech companies, Francesca Carlesi, the CEO of one of the UK’s largest FinTech startups, Revolut, recently raised concerns that London could lose its hub status to New York or Paris. Carlesi has been pushing for the UK government to adopt startup-friendly policies as the company waits to be approved for a banking licence.
Still, according to the CTA, more than 3,200 FinTech companies are headquartered in the UK, with private equity and venture capital investment in UK FinTech companies reaching about $23.5 billion last year. One-third of all UK unicorns are FinTech firms, according to CTA, a higher share than in any other financial centre.
“London’s vibrant FinTech community and forward-thinking environment are exactly what we need to propel our expansion in Europe,” Arbabi said in a statement.
Feature image courtesy VoPay.