Airwallex said to pursue UK, US banking licenses

Singapore-based payments firm Airwallex is reportedly planning to expand into the lending sector by pursuing banking licenses in the US and the UK.

CEO Jack Zhang said on Apr. 7 that the company intends to apply for a banking license in the UK. He described the country as a favorable environment for fintechs.

In the US, Airwallex may consider acquiring a bank to navigate the complex regulatory landscape.

Founded in Australia a decade ago and now headquartered in Singapore, Airwallex primarily offers payments and banking services for global businesses.

The company has relied on payment licenses but is piloting a credit card in Australia as part of its expansion into lending.

🔗 Source: Pymnts

🧠 Food for thought

A. Regulatory landscape shapes fintech expansion strategies

Airwallex’s dual approach to securing banking licenses highlights the fragmented global regulatory environment fintechs must navigate.

The company’s preference for direct application in the UK versus acquisition in the US stems from fundamentally different regulatory structures, including the UK’s centralized Financial Conduct Authority and America’s complex network of state and federal regulators 1.

This represents a typical pattern for global fintechs, who must adapt to regional regulatory frameworks rather than applying a uniform expansion strategy across markets.

The UK has cultivated its position as a fintech-friendly jurisdiction through initiatives like regulatory sandboxes and innovation hubs, allowing it to attract companies like Airwallex despite Brexit disruptions 2.

In contrast, the US banking sector’s fragmented oversight model, with both federal and state regulators, has led numerous international fintechs to pursue bank acquisitions rather than building from scratch. Airwallex follows the path of companies like SoFi, which acquired Golden Pacific Bancorp to secure its banking charter 3.

This regulatory navigation represents a significant operational challenge, as evidenced by Airwallex’s existing network of over 60 licenses globally and partnerships with more than 50 financial institutions 3.

B. Fintech maturation follows predictable expansion from payments to full banking

Airwallex’s move into lending follows a well-established trajectory for payment companies seeking higher-margin financial services and deeper customer relationships.