Lithuanian Fintech PayRay Throws Its Doors Open as a New Commercial Bankby Fintechnews Baltic October 15, 2020
PayRay, a Lithuanian fintech company, has now launched its banking operations after securing a banking license from the European Central Bank (ECB).
The bank will soon start accepting deposits from Lithuanian customers (private individuals), which will be accepted in Euros for a period ranging from six months to five years. The deposits will take place via the online platform Raisin – the first pan-European deposit marketplace that currently cooperates with more than 90 banks.
The business service portfolio of PayRay includes both factoring and loans. Credit is provided in cooperation with the company INVEGA, while solutions for farmers are developed together with the Agricultural Credit Guarantee Fund.
Moreover, the bank offers business loans via the European Investment Fund under the EU Programme for Employment and Social Innovation (EaSI).
“While we were working towards achieving our objectives, we discovered a niche for a new type of bank operations through active communication with our business customers, by tackling their needs and searching for the best solutions to satisfy their problems.
Thus, we began the process of the company’s conversion into a bank, and we can now start a new phase of our business activities. We see the potential for enormous growth in this area,”
said Renato La Fianza, CEO of PayRay Bank.
La Fianza pointed out that by operating as a bank, PayRay can create more competition in the market, which will facilitate businesses to deal with challenges they face in searching for financing solutions for their working capital.
The company’s deposit solution will also contribute to creating more attractive conditions for business financing under competitive conditions. At the same time, private individuals will be able to receive banking services.
In addition, PayRay is said to have already begun the geographical expansion of its business financing services, and the company will soon start engaging in factoring provisions to customers in Latvia.
Last December, following a recommendation from the Bank of Lithuania, the ECB granted a banking license to PayRay allowing the company to provide the full range of financial services.
A former Vilnius factoring company, PayRay launched its activities in Lithuania in June 2018. The company now employs nearly 40 experienced specialists in the finance sector.
PayRay’s authorised capital currently amounts to EUR 36,4 million.
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