Lithuania is a destination favored by fintech startups aspiring to expand in Europe. A Swiss firm has now received one of the much coveted licenses needed to operate in the economic bloc.
Sonect has been awarded a so-called e-money-license by the central bank of Lithuania, the company said in a statement on Tuesday. The license will allow the company to operate in the European Economic Area.
The country on the Baltic sea has become a favored place for fintechs with plans to expand their business. Revolut, the U.K.-based payment application provider, is one such firm, having used a Lithuanian banking license to start its bid to conquer the continent.
Strong Partners
The business idea of Sonect, a startup based in Zurich, sounds a little anachronistic: using the app provided by Sonect, clients can get cash from partners such as food stores, instead of having to rely on ATMs. The company will now export the service to a few choice European markets.
In Switzerland, Sonect has teamed up with a powerful financial player, Postfinance, as well as Temenos, the developer of banking IT systems. Hypi Lenzburg, the regional bank with a strong dedication to new technological solutions, has made the app available for its clients.
