When Pedro Franceschi, chief executive officer and co‑founder of Brex, announced on August 7 2025 that the company had clinched a European Union Payment Institution licence through the Netherlands, the fintech world took notice. The new licence instantly authorises Brex to operate in all 30 EU member states, meaning European startups can now access corporate cards and spend‑management tools without maintaining a U.S. legal entity. What this really means for founders, investors and the broader market is a fresh round of competition in a space that has been dominated by U.S.‑centric platforms.
Why the EU licence matters
The EU Payment Institution licence, granted under the European Payments RegulationNetherlands, removes a major friction point for cross‑border startups. Previously, a company headquartered in Berlin had to set up a U.S. subsidiary just to use Brex’s card issuance and treasury suite – a costly, time‑consuming step. Now, the platform can issue cards in euros, process direct debits and credit transfers locally, and integrate directly with European ERP systems.
Industry analysts say the move also signals Brex’s confidence in its business model at a time when venture capital is tightening and many fintechs are scaling back. The company projects $500 million in revenue for 2025, up from $380 million in 2023, and aims to keep cash burn under control while it builds the European footprint.
On‑the‑ground rollout in Amsterdam
Brex has opened a modest 12‑person office in Amsterdam, staffed with sales reps, operations specialists and customer‑success managers. The team will start onboarding a handful of European clients in a phased approach that begins this fall and ramps up to full‑scale service by early 2026. Franceschi joked on X (formerly Twitter) on August 8, 2025: “Big news. Brex is coming to Europe!” He later added in a blog post that the licence “enables Brex to directly serve EU‑based businesses and their subsidiaries with locally accepted cards, less friction, and best‑in‑class payment capabilities.”
Key facts about the rollout:
- Initial focus on fintech, SaaS and AI‑driven startups already using Brex in the U.S.
- Target to onboard 200 European customers by Q2 2026.
- Integration roadmap includes native support for the Oracle Fusion Cloud ERP platform.
- Parallel effort to secure a separate licence for the United Kingdom, expected in late 2026.
Competitive landscape
Brex isn’t stepping into a vacuum. U.S. rivals Ramp, valued at $22.5 billion, and Mercury have already nudged into Europe with local partnerships and licensing deals. What sets Brex apart, according to its leadership, is the depth of its infrastructure: “Competitors can’t replicate overnight,” the company wrote in its EU expansion journal, “they’d need years of regulatory work and operational excellence to serve companies at this scale across borders.”
In practice, the difference shows up in product breadth. Brex bundles corporate cards, expense automation, cash‑flow forecasting and API‑first treasury services under a single dashboard – a “intelligent finance platform,” as the firm calls itself. For a European startup eyeing a U.S. launch, that unified experience could reduce the need for multiple vendors.
Impact on investors and the upcoming IPO
Fintech observers from Crowdfund Insider argue that the European licence bolsters Brex’s valuation narrative ahead of a potential initial public offering. A broader customer base, diversified revenue streams and evident regulatory competence are all tick boxes that underwriters love. “Brex’s move signals confidence in its business model and its ability to compete in a crowded field,” the outlet wrote on September 25 2025.
While the company has not raised fresh equity since its 2022 $12.3 billion valuation, the projected $500 million revenue line‑item for 2025 could translate into a healthier EBITDA margin, making the firm more attractive to public‑market investors wary of high‑growth, high‑burn fintechs. Moreover, the EU licence opens doors to institutional investors based in Europe who often have mandates to back companies with a proven regulatory track record.
Looking ahead: challenges and opportunities
Europe’s banking ecosystem is famously fragmented – think 30 different regulatory bodies, 19 different currencies before the euro, and a patchwork of Open Banking standards. Brex will need to navigate these complexities while keeping the user experience seamless. The company’s partnership with Oracle as the first fintech global issuer on Oracle Fusion Cloud could give it a leg up, but the details remain under wraps.
On the upside, the European startup scene is booming. According to Eurostat, venture capital deals in the region grew 12 % year‑over‑year in Q2 2025, with AI‑focused firms like Anthropic and fintech disruptors attracting substantial capital. Brex already counts Anthropic among its 1,500 global customers, and the new licence means the company can now pitch directly to Anthropic’s European offices without a U.S. intermediary.
In short, the EU licence is both a badge of regulatory credibility and a practical tool to win market share. Whether it leads to a headline‑making IPO remains to be seen, but the groundwork is clearly being laid.
Frequently Asked Questions
How will the EU licence change Brex’s service offering for European startups?
The licence lets Brex issue corporate cards in euros, process local direct debits and credit transfers, and offer its spend‑management dashboard without requiring a U.S. subsidiary. European founders can now onboard directly, reducing legal overhead and speeding up access to treasury tools.
What is the timeline for Brex’s full rollout across the EU?
Brex will begin a phased onboarding of select customers in the autumn of 2025, aiming to reach 200 European clients by the second quarter of 2026. Full operational capability across all 30 EU nations is expected by early 2026.
Which competitors are already in the European corporate‑card market?
U.S. firms Ramp and Mercury have launched local licences or partnerships in several European countries. Their offerings focus on expense automation, but Brex differentiates itself with a broader treasury suite and deeper integration with ERP systems like Oracle Fusion.
What impact could the EU expansion have on Brex’s upcoming IPO?
A European footprint enhances Brex’s growth narrative, diversifies revenue, and showcases regulatory competence—factors that can boost investor confidence and potentially lift the IPO valuation, especially in a market wary of high‑burn fintechs.
Is Brex also targeting the United Kingdom?
Yes. The company is pursuing a separate licence to serve UK‑based customers, with an expected filing window in the latter half of 2026, aligning with its broader goal of a pan‑European presence.
