The UK is scheduled to exit the EU on the 31st October 2019. Negotiations are continuing between the two parties to reach a withdrawal agreement that will, among other things, allow UK-authorised payment providers to continue to serve customers in the EU, EEA and EFTA.
If the UK leaves without an agreement – a “No Deal” or “Hard” Brexit – UK-authorised payment providers will no longer be permitted to provide services in the EU, EEA and EFTA, as UK FCA-issued licences will no longer be recognised in the bloc.
In order to ensure business continuity for customers in the event of a Hard Brexit, Finolita Unio’s parent company, Senjõ Group, has made arrangements for us to take over the EU acquiring aggregation business of our UK-authorised sister company, PXP Financial. Finolita has an EMI licence granted by the Central Bank of Lithuania, allowing us to passport payments to all EU and EEA/EFTA countries. Finolita is also registered with the applicable card schemes.
Finolita and PXP Financial are committed to ensuring that business will continue as usual for all Senjõ Group customers, wherever they are based. If you have further questions about our Hard Brexit preparations, please see our FAQs below:
What is Senjõ Group and PXP Financial’s business continuity plan in case of a “Hard” Brexit and how is Finolita involved?
PXP Financial is a UK-authorised subsidiary of our parent company, Senjõ Group. As such it is a sister company of Finolita Unio LLC.
In order to ensure that PXP Financial customers can continue to receive services under their merchant agreement in the event of a Hard Brexit, the company has set up a partnership with Finolita. Under this agreement, all of the PXP Financial EU acquiring aggregation business will be transferred to Finolita. Finolita will have the same contractual obligations to merchants and partners in the EU as PXP Financial does now.
This plan will only come into effect if there is a “Hard” Brexit.
Why is Finolita taking over PXP Financial’s EU business?
PXP Financial is a UK-authorised payment provider. This means that, in the event of a “Hard” Brexit, its UK FCA licence will no longer be recognised in the EU, EEA, and EFTA, thus preventing PXP Financial from operating in these jurisdictions.
Finolita Unio LLC, meanwhile, is based in Vilnius, Lithuania. It holds an electronic money institution (EMI) licence granted by the Bank of Lithuania. This allows the company to passport its services to other EU countries and to countries in the EEA and EFTA. By transferring PXP Financial’s EU business, both companies can ensure European operations continue smoothly, without disruption. Preparation for a possible “Hard” exit will also ensure that the move from PXP to Finolita -if indeed necessary – will come with no impact to merchants’ customers.
What impact will Brexit have on our contractual obligations with PXP Financial and Finolita?
The operation, service and contractual conditions will not change for merchants and partners. Your point of contact and your Client Care Manager will stay the same as they are under your relationship with PXP Financial.
What will change in your contract and Terms and Conditions?
In the event of a Hard Brexit, you will receive an official communication, which will detail any points in the contract that will be affected by the handover from PXP Financial to Finolita.
For more information about PXP Financial visit www.pxpfinancial.com