Fintechwerx Pursues European Ambitions Through Gibraltar Venture

Fintechwerx signs LOI to form a regulated Gibraltar payment entity with CardCorp and Stream Innovation Group, aiming for cross-border operations, pending approvals.

The Canadian financial technology firm Fintechwerx International So has taken a significant step toward establishing a European presence. The company announced it has entered into a non-binding Letter of Intent (LOI) with UK-based CardCorp Limited and Nova Business Holdings, operating as Stream Innovation Group. The central objective of this collaboration is the creation of a regulated payment entity intended for future cross-border operations.

A Conditional Strategic Move

It is crucial to note the preliminary nature of this announcement. The LOI is described as largely non-binding and remains subject to multiple regulatory approvals. Fintechwerx explicitly stated there is no guarantee the proposed transaction will be finalized or receive the necessary regulatory consent.

The venture's success is contingent upon several factors: the execution of definitive agreements, approval from the Gibraltar Financial Services Commission (GFSC), and the satisfaction of other standard closing conditions.

Blueprint for a Gibraltar-Based Payment Institution

The three partners intend to form and capitalize a new corporate entity in Gibraltar. This new company would seek authorization as a Class C Payment Institution under Gibraltar's regulatory framework, specifically the Financial Services Act 2019 and the Financial Services (Payment Services) Regulations 2020.

The business model envisions operating as a Payment Facilitator (PayFac). To function, the entity would need to establish sponsorship structures with Visa and Mastercard member institutions, requiring not only the GFSC license but also separate approvals from the card networks themselves.

Investment Terms and Capital Commitments

According to the release, Fintechwerx plans to invest £250,000 to acquire a 20% stake in the new Gibraltar company. This investment would proceed only after final contracts are signed and all required approvals are secured. The remaining equity would be split between CardCorp and Stream Innovation Group, each holding a 40% share.

As part of the initial LOI, Fintechwerx has committed to an upfront payment of £50,000. These funds are earmarked for covering regulatory, legal, and formation costs associated with advancing the transaction.

Recent Corporate Activity

This development follows other recent strategic moves by Fintechwerx. Earlier this month, the company disclosed a $50,000 investment in AetherEV Energy Corporation. In January, it completed a non-brokered private placement raising CAD $0.25 million.