Brex, the San Francisco-based fintech unicorn known for corporate cards and spend management, has secured a Payment Institution (PI) license in the European Union via the Netherlands. Announced in August 2025, the license authorizes Brex to operate across all EU member states, directly issue corporate credit cards, and execute payment transactions such as SEPA direct debits and credit transfers.
For Brex, this milestone is more than paperwork – it removes the U.S.-only limitation that previously restricted onboarding. Now, the company can serve enterprises originated in Europe, not just subsidiaries tied to U.S. entities. The Netherlands was a strategic choice: a fintech-friendly regulator, an English-speaking hub, and passporting rights that let Brex expand across 30 EU/EEA countries with a single license.
Why it matters
The EU PI license, defined under PSD2, enables a wide range of payment services: issuing instruments, remittances, transfers, and more. Crucially, it gives Brex direct access to European rails like SEPA. Customers will benefit from locally issued cards with higher acceptance rates, euro-denominated payments, and fewer intermediaries. As CEO Pedro Franceschi put it, “No third-party intermediaries, no borrowed licenses, and no workarounds required.”
This license also provides regulatory credibility. Meeting EU standards on governance, capital, and compliance is rigorous. For fintechs, that stamp of approval signals resilience and commitment. It’s also a moat – competitors relying on third parties cannot easily match the same autonomy.
Strategic context
Brex’s global roadmap has been clear from the start. Over seven years, it built infrastructure spanning 200+ countries and 60 currencies. Yet until now, it could only onboard firms with U.S. presence. With 1,500 existing customers already operating in the EU – nearly half of whom are multinational – demand was strong. Ooni, the UK-based pizza oven maker, highlighted Brex’s appeal: “It’s one system employees can use regardless of where they are.”
Financially, Europe represents a massive opportunity. Franceschi has pegged the potential at up to $5 billion annually. Legacy providers like Barclays and AmEx dominate, but their solutions are fragmented. Brex aims to win CFOs with integrated cards, expense management, and treasury tools. It has already established an Amsterdam office, hired local staff, and will roll out services in phases through 2026. A UK license is next on the roadmap.
This expansion also comes as Brex prepares for an IPO and moves toward profitability. By doubling down on compliance-heavy expansion, it differentiates itself from U.S. rivals like Ramp, who focus domestically with partner-driven models. Brex is betting that owning infrastructure and licenses will pay off in product quality and long-term margins.
What it unlocks
- Local card issuance: EU corporate cards with domestic BINs, fewer declines, and no foreign quirks.
- Direct SEPA access: Brex can originate euro transfers and direct debits itself.
- Full product suite: Expense management, treasury, and spend controls available to EU-based firms.
By controlling the stack, Brex can iterate faster, avoid revenue-sharing, and build features competitors can’t easily replicate.
Lessons for fintech startups
- One license, many countries. EU passporting provides scale, but requires upfront effort.
- Licenses as moats. Harder to get, but grant autonomy and differentiation.
- Local compliance = local product. Real SEPA or local cards only come with local licenses.
- Plan for UK separately. Brexit means two playbooks.
- Follow customer pull. Expansion works best when existing clients already need you abroad.
Brex’s EU license shows how regulatory fluency, infrastructure, and timing can unlock new growth. For startups, it’s a reminder: scaling across borders is as much about compliance as ambition.
Your Fintech Story helps fintechs grow with consulting, coaching, and market expansion support. Reach out if you want to scale smarter.
