Fintechwerx Eyes European Expansion Through Gibraltar Payments Venture

Fintechwerx signs LOI to form a regulated payment institution in Gibraltar, investing £250k for a 20% stake, pending regulatory and card scheme approvals.

Fintechwerx International So has taken a significant step toward establishing a European presence by entering into a preliminary agreement to form a regulated payment institution in Gibraltar. The company's strategic move hinges on obtaining the necessary regulatory approval, a process now underway.

Strategic Partnership and Investment Terms

The non-binding Letter of Intent (LOI) was signed with two independent entities: UK-based CardCorp Limited and Nova Business Holdings Ltd, operating as Stream Innovation Group. The trio intends to jointly establish and capitalize a new payment services company based in Gibraltar.

Under the proposed structure, Fintechwerx has committed to an investment of £250,000. This capital would secure the company a 20% ownership stake in the new entity, contingent upon the execution of definitive agreements and the granting of regulatory clearance. The remaining equity is slated to be divided between CardCorp and Stream Innovation Group, each holding a 40% share.

A separate provision within the LOI obligates Fintechwerx to provide an initial £50,000 to cover expenses related to regulatory applications, legal fees, and company formation costs.

Regulatory Pathway for Payment Facilitator Model

The planned Gibraltar-based company is designed to operate as a Payment Facilitator (PayFac). This business model involves processing transactions under the sponsorship of established member institutions within the Visa and Mastercard networks. Launching these operations requires not only a regulatory green light but also direct approval from the card schemes themselves.

The partnership will seek a specific Class C Payment Institution license, governed by Gibraltar's Financial Services Act 2019 and the Payment Services Regulations 2020. The Gibraltar Financial Services Commission (GFSC) is the responsible regulatory authority.

It is emphasized that the LOI is largely non-binding, with exceptions for clauses covering confidentiality and the funding of preliminary work. Moving to a final closing depends on several factors, including signed binding contracts, a successful regulatory review, and the satisfaction of customary closing conditions. Fintechwerx explicitly notes that there is no guarantee the transaction will be completed or that the required license will be awarded.

Context of Recent Corporate Developments

This Gibraltar initiative follows a series of recent announcements from Fintechwerx. In early February, the company disclosed an investment in AetherEV Energy Corporation and reported the completion of a proof-of-concept phase for ActioHX, aimed at advancing its AI-Werx implementation. January saw the launch of a new corporate website intended to support sales and expansion efforts.

Looking ahead, the clear next milestones for the Gibraltar project are the signing of definitive agreements and, most critically, the licensing decision from the Gibraltar Financial Services Commission.