According to multiple reports Weavr just announced the acquisition of a European e-money license. This milestone is not only a significant achievement for the company but also a pivotal moment for the embedded finance industry, facilitating broader adoption by B2B SaaS businesses.
After a thorough review of Weavr’s innovative operating model, the MFSA has granted this license. Designed to streamline the integration of embedded finance into software applications, Weavr’s model ensures a seamless and secure customer experience, setting new standards in the industry.
Plans to Revolutionize Embedded Finance
Embedded finance is rapidly emerging as a new and transformative distribution channel for financial services. Traditionally, this has been largely implemented through the Banking-as-a-Service operating model. While BaaS has provided a framework for fintech innovation, it has also raised several critical questions among regulators across the globe, including those in Europe.
Regulatory bodies have expressed apprehension regarding the potential risks associated with the banking as a service model, such as issues of compliance, security, and the overall ability to maintain strict oversight. These concerns highlight the need for a reliable approach to embedding financial services within software applications.
Weavr has responded to these legitimate concerns with a different approach that is carefully designed to meet and exceed regulatory expectations. Unlike the traditional BaaS model, Weavr’s strategy has been developed from the ground up to ensure comprehensive oversight and seamless integration of financial services into software products.
This approach focuses on delivering exceptional security standards and a streamlined customer experience, addressing the regulatory requirements and concerns head-on.
Active Role in Integration of Embedded Finance
Weavr has played a massive role in providing B2B SaaS companies with some comprehensive solutions to integrate embedded finance services, offering high-quality infrastructure without all the complexities.
With its newly acquired license, the company is on track to develop the most extensive domiciled IBAN offering in Europe, supporting major European currencies and economies beyond the Eurozone.
This will enable Weavr to introduce a wide range of financial products to these regions, including account services, global fund transfers networks and cards. A strategic partnership established with Visa a year ago means that many of these financial products will be powered by the multinational payment card service.
This collaboration significantly enhances Weavr’s capabilities, offering businesses access to a wide array of financial solutions underpinned by Visa’s trusted security.
What Did Weavr’s CEO Have to Say?
Commenting on the achievement of securing the EMI licence, Alex Mifsud, who is the CEO of Weavr, stated that he was proud of the fact that his company’s license was granted, especially at a time when regulators from Europe are focusing more on the various risks associated with the BaaS model,