Vinted Pay, the payments division of Vinted’s secondhand marketplace, has secured an Electronic Money Institution (EMI) licence from the UK Financial Conduct Authority (FCA).

The new licence allows Vinted Pay to offer electronic money services and payment solutions within the United Kingdom, expanding its internal financial infrastructure beyond current European operations.

Expansion into the UK Market

Vinted Pay was established in 2023 after receiving an EMI licence from the Bank of Lithuania. The platform aims to address the unique payment requirements of Vinted’s community members and streamline operations by decreasing dependency on third-party payment platforms, while still collaborating with external service providers for secure transactions.

Currently, wallet services are available in various European countries, allowing buyers’ funds from completed sales to be transferred into a seller’s Vinted Pay account balance. This balance can then be used for purchases or withdrawn to a bank account. The UK licence will allow Vinted Pay to introduce similar wallet services for UK users, with more details expected to follow.

This move towards internalising payment infrastructure is part of a broader trend among marketplaces aiming to enhance control over the transaction process, boost margins, and customise financial service offerings to their specific user base. For Vinted, this capability underpins the trust and settlement mechanisms essential for peer-to-peer marketplace operations.

VP of Payments at Vinted, Modestas Tursa, commented:

The FCA authorisation is a significant milestone for Vinted Pay in the UK market, reinforcing its commitment to providing secure and dependable payment and wallet services to its members.