LemFi has taken a major step in its European growth strategy by acquiring the Irish currency exchange platform Bureau Buttercrane.
This acquisition, approved by the Central Bank of Ireland, grants LemFi access to the European Economic Area (EEA) through an Irish license, opening up significant growth opportunities across the region.
The move is crucial for regulatory compliance following Brexit.
Although LemFi secured a British license in 2021 through its acquisition of RightCard, it faced restrictions in processing transactions directly within the EEA. With the newly acquired Irish license, the fintech can now leverage a system called passporting, allowing it to operate seamlessly in all EEA countries.
Strategic Focus on Regulatory Compliance
LemFi’s Chief Executive Officer (CEO), Ridwan Olalere, highlighted the strategic importance of this acquisition stating:
“Our primary objective wasn’t about Buttercrane’s technology or profitability—it was about securing the right regulatory framework for our expansion. We already have the technology; this was a deliberate move to ensure compliant and uninterrupted operations across Europe.”
The acquisition comes just 21 days after LemFi announced a partnership with Dutch payment company Modulr Finance to initiate operations in Europe while awaiting approval from the Central Bank of Ireland.
Mr Olalere explained that the swift approval was due to the company’s experienced team and rigorous adherence to regulatory processes.
“Having prior approval from another European regulator works in your favor, enhancing your credibility,” he added.
Dublin as the European Hub
With the acquisition finalized, LemFi plans to establish Dublin as its European headquarters, hire local staff, and deepen its relationship with regulators.
This expansion builds on LemFi’s success in Asia and Africa, where the company processes over $1 billion in monthly payment volume.
The European remittance market, valued at $64 billion, presents a lucrative growth opportunity for the company.
Navigating a Complex Market
Mr Olalere acknowledged that expanding in Europe comes with challenges due to its fragmented market, varying regulations, and diverse consumer preferences.
“Europe is a vast and complex market with different payment methods in each country. While we’re optimistic, we’re aware of the hurdles ahead,” he said.
Integrating local payment methods is key to LemFi’s European success. For example, Olalere emphasized the importance of supporting France’s popular payment method, Carte Bancaire, which is independent of Visa or Mastercard.
“Entering the French market without supporting Carte Bancaire would mean missing out on a significant user base,” he explained.
Positioned for Growth
Despite the challenges, LemFi remains confident. Backed by a recent $53 million Series B funding round and strong investor support, the company is ready to carve out its niche in the competitive European remittance market.
For remittance startups, expanding into multiple markets is essential for growth. Offering a broader range of corridors—such as U.S. to India or Europe to Africa—not only diversifies revenue but also enhances customer loyalty by providing a comprehensive solution for cross-border payments.
LemFi aims to capitalize on these opportunities, drawing on its experience in Asia and Africa to navigate Europe’s complexities and deliver tailored payment solutions.
