FairFX gains e-money licence with takeover of digital banking service for SMEs, Q Money
FairFX, a London-based multicurrency payments service, has acquired Q Money and its e-money licence.
Q Money’s founder, Tony Quirke, has been appointed CFO of FairFX as part of the deal.
Q Money, a start-up venture, was going to build a bank for SMEs in the UK. However, it failed to take off due to the lack of funding, Banking Technology understands.
FairFX says the acquisition opens up “many exciting opportunities”.
“Firstly, the e-money licence opens an array of options for FairFX to rationalise its cost base including the possibility of becoming the issuing bank of its own cards and internalising parts of the supply chain,” it explains.
“Secondly, FairFX believes that businesses, particularly SMEs, have been poorly served by banks for a long time. Creating a UK digital-banking product for businesses provides FairFX the opportunity to further diversify its revenue stream and to enter a market that it believes currently has relatively few participants.
“Thirdly, the e-money licence permits FairFX to take advantage of opportunities created by anticipated government legislation that is expected to open up direct access to the UK payments infrastructure.”
The initial consideration payable for the acquisition is £425,000. Further consideration of up to £825,000 may be payable to Q Money over the next three years, subject to the achievement of certain performance milestones.