Payrexx applies for European payment institution license in Liechtenstein
The Swiss company Payrexx AG, which specializes in innovative payment solutions for SMEs, is expanding into the European Economic Area (EEA). To this end, it has founded its first subsidiary, Payrexx Europe AG, in Liechtenstein. The aim is to comprehensively serve merchants in Germany, Austria and other European countries in the future by obtaining a European payment institution license (PI license).
Payrexx Europe AG Managing Director Gerhard Häring (left) and Senior Compliance Officer Helmut Bahamon seal the foundation of Payrexx Europe AG on the shores of Lake Thun.
The most important facts in brief:
Acquisition of the European payment services license: Payrexx AG from Switzerland is well on the way to obtaining a European Payment Institution license (PI). An important step in this direction was the founding of Payrexx Europe AG, based in Liechtenstein.
Strong management team: Gerhard Häring and Helmut Bahamon are two experienced finance and compliance experts at the helm of the new company.
Technology remains in Switzerland: development and optimization of the software will continue to take place in Thun - sales in Europe will be managed from Vaduz in future.
Gerhard Häring and Helmut Bahamon are still standing on the shores of Lake Thun, where Payrexx has been based for exactly ten years. In future, however, they will be working in Liechtenstein and managing the new Payrexx Europe AG from Vaduz. The first full subsidiary of Payrexx AG was officially founded in July.
"With Payrexx Europe AG, we want to develop the European market in a targeted manner, especially the neighboring regions such as Germany and Austria," explains Ivan Schmid, Managing Director of Payrexx AG. "The aim is to establish our innovative all-in-one payment solution throughout the European Economic Area (EEA)."
But there is still a lot to do before that happens. "We are currently deep in a paperwork war," says Gerhard Häring, Managing Director of the new company. Although Thun and Liechtenstein are almost identical culturally - both surrounded by mountains, both crowned by a castle, both with a similar number of inhabitants - the devil is in the detail. "We have to take a close look at the legal intricacies in particular."
This is noticeable, for example, in the acquisition of the license required to operate a payment institution. However, obtaining this so-called Payment Institution License (PI) is very time-consuming, explains Helmut Bahamon, Senior Compliance Officer at Payrexx Europe AG: "But we are making good progress!" After six months of work, a preliminary application was submitted to the Financial Market Authority in June. A more detailed examination and the final review are still pending, but if everything goes well, Payrexx Europe AG should be able to look forward to receiving its definitive license this year.
Liechtenstein as the perfect starting point for expansion
Over the past ten years, Payrexx has established itself as a payment provider, particularly among Swiss SMEs. The solution is designed to offer merchants everything they need to get their business off the ground online. If you already have an online store, you can easily connect Payrexx to it and offer your customers all popular payment methods - whether TWINT, Mastercard, Visa, PostFinance Pay, Apple Pay or Google Pay. And anyone who does not yet have an online store can use the Payrexx sales tools directly and create simple donation forms, sales pages or payment links. Payrexx is also currently launching in the POS area, for example with the new Tap to Pay payment app and the upcoming card readers.
"The product is mature," summarizes Helmut Bahamon, "now we just have to present it to the European Economic Area." Liechtenstein is the perfect starting point: the Principality is not only geographically located between Switzerland and Austria, but also in terms of language and legislation. In addition, with a license in Liechtenstein, you can operate throughout the EEA thanks to the freedom to provide services and freedom of establishment. The country is therefore an attractive location for payment service providers or e-money institutions to operate throughout Europe. "With Liechtenstein, we get the best of both worlds," adds Gerhard Häring, "the Schoggistängeli and the Weggli, so to speak."
Swiss quality paired with global knowledge
With their many years of experience in the financial market, the two prove to be ideal personalities to take this step together with Payrexx AG. The 62-year-old Gerhard Häring brings with him experience from both the IT and banking sectors. In his previous activities for various international banks and consulting mandates, the Basel native has worked in several corners of the world. The 35-year-old Helmut Bahamon was born in Moscow, grew up in Spain and lived in Munich for a long time. Before Payrexx, he worked in both the automotive industry and the banking sector. The team of two is therefore not only technically adept, but also globally oriented.
"We are delighted to have a capable, innovative and forward-looking duo at the helm of Payrexx Europe AG in Gerhard and Helmut. Together they will help shape the future of Payrexx and represent our vision in the best possible way," says Ivan Schmid, CEO and founder of Payrexx. He himself will be a member of the Board of Directors of Payrexx Europe AG, as will Michael Müller and Thomas Feldkircher.
Their involvement will ensure that the valuable knowledge of the payment industry that has been gathered in Thun over the past few years is transferred to Liechtenstein and all neighboring regions in the best possible way. Ultimately, the main focus in Vaduz will be on sales and marketing of the product: once the PI license is in place, additional sales employees will be hired and the neighboring market will be actively approached. However, the software itself will continue to be developed and optimized in Switzerland. Or, as the Liechtenstein duo put it: "From Thun for the world!"
