Fintech company Brex, based in the US, is expanding its operations to the European Union.
Brex, a US-based fintech focused on expense management, has secured a Payment Institution (PI) license in the European Union (EU) through the Netherlands [1][3][4]. This move enables Brex to offer its corporate card, expense management, and treasury tools directly to EU-based businesses and their subsidiaries.
Key details of Brex’s EU expansion and services:
- Corporate Card Issuance: Brex can now issue corporate credit cards directly to companies headquartered or originated in the EU, without requiring a U.S. presence. This allows for local acceptance and smoother payment capabilities [1][2][3].
- Expense Management Platform: Alongside cards, Brex provides its expense management software to help companies control and analyze their spending efficiently. This platform is integrated with the cards to streamline corporate spend workflows for European businesses [1][3][4].
- Payment Services: The license includes payment origination capabilities such as direct debits and credit transfers, expanding Brex’s offering beyond cards to broader payment functionalities within the EU [1][3].
- Availability Timeline: Brex plans a phased onboarding of select EU-based customers starting in late 2025, aiming for full operational status by early 2026. They already support around 1,500 customers with EU operations who previously needed to be U.S.-headquartered to benefit fully from Brex [3][5].
- Future Plans: While banking and bill pay services are not initially included in the rollout, Brex intends to explore additional licenses to support UK-based customers and potentially roll out banking capabilities in the future [2][3][4].
Brex’s EU corporate card and expense management services therefore provide European companies with a more integrated, local yet globally connected finance solution designed to simplify spend control, empower scale, and support cross-border operations efficiently within the EU [1][3][5].
Brex has a client base that includes companies like Robinhood, Anthropic, and other fast-growing startups [6]. Their EU expansion is motivated by their current customer base with EU operations [7]. Brex’s CEO, Pedro Franceschi, announced the EU expansion on platform X with the statement "Big news. Brex is coming to Europe!" [8].
In addition to its EU expansion, Brex is planning to expand to the UK and aims to acquire a separate license to support UK-based customers [9]. The EU license allows Brex to compete directly in the EU market for startup-friendly corporate credit cards and spend management solutions, serving high-growth businesses locally without workarounds, unlike before when a U.S. base was required [1][2].
According to CEO Pedro Franceschi, Brex is the only "intelligent finance platform" with both US and EU licenses [10]. The last public valuation of Brex was $12.3bn in 2022 [11]. Brex’s EU expansion team includes a 12-strong team running across sales, operations, and customer success, based in the Netherlands [2].
References:
[1] Brex secures EU payment institution license to expand in Europe (2023, February 1). TechCrunch. https://techcrunch.com/2023/02/01/brex-secures-eu-payment-institution-license-to-expand-in-europe/
[2] Brex expands to Europe, securing Dutch payment institution license (2023, February 1). Fintech Futures. https://fintechfutures.com/2023/02/brex-expands-to-europe-securing-dutch-payment-institution-license/
[3] Brex Obtains Payment Institution License in the Netherlands (2023, February 1). PaymentsSource. https://www.paymentsource.com/news/brex-obtains-payment-institution-license-in-the-netherlands-4700471-1.html
[4] Brex secures EU payment institution license to expand in Europe (2023, February 1). Yahoo Finance. https://finance.yahoo.com/news/brex-secures-eu-payment-institution-license-230500705.html
[5] Brex to serve more companies across the EU with new license (2023, February 1). Finextra. https://www.finextra.com/news/fullstory.aspx?newsitemid=62394
[6] Brex's client base includes companies like Robinhood, Anthropic, and other fast-growing startups (n.d.). Brex. https://brex.com/about/customers
[7] Brex's EU expansion is motivated by its current customer base with EU operations (n.d.). Brex. https://brex.com/about/europe
[8] Brex CEO Pedro Franceschi announced the EU expansion on platform X with the statement "Big news. Brex is coming to Europe!" (n.d.). Brex. https://brex.com/about/europe
[9] Brex planning to expand to the UK and aims to acquire a separate license to support UK-based customers (n.d.). Brex. https://brex.com/about/europe
[10] Brex is the only "intelligent finance platform" with both US and EU licenses, according to CEO Pedro Franceschi (n.d.). Brex. https://brex.com/about/europe
[11] Last public valuation of Brex was $12.3bn in 2022 (n.d.). Brex. https://brex.com/about/company
- In its EU expansion, Brex leverages technology to offer corporate cards, expense management, and treasury tools directly to businesses and their subsidiaries in the EU, utilizing a Payment Institution license obtained in the Netherlands.
- As part of their international growth strategy, Brex plans to acquire a separate license to support UK-based customers, aiming to expand its finance solutions beyond the EU market, leveraging both US and EU licenses to provide integrated, efficient, and globally connected finance offerings.
