Global eCommerce marketplace Wish is expanding into payments processing.
Contextlogic B.V. (CLBV), a subsidiary of ContextLogic Inc., the owner of Wish, has been awarded a European payment services license by the Dutch Central Bank (DNB), according to a Tuesday (July 6) press release.
Wish will use the license, which is applicable in all its European markets, to pay merchants based in the European Union. The move, which won’t affect consumers, gives the company more control of its payments chain and frees up the platform from some of its use of third-party processers.
The platform also plans to expand into other payment services with time.
“The granting of this license is an exciting first step towards becoming a payments services provider in Europe,” said Ward Homminga, regional general manager of CLBV, in the press release. “Not only will it deliver cost savings as we eventually maintain control over our payments processes, but it will also provide a framework to explore opportunities in the payment services space.”
Easier and cheaper payment processing is important for sellers on marketplaces, as are faster payments. A recent PYMNTS study found that 43 percent of small and medium-sized businesses (SMBs) now sell their goods and services on online marketplaces, and faster payouts are a key way to keep those SMBs engaged with their marketplace.
Its services will be under the DNB’s supervision and will be compliant with the European Payment Services Directive 2 (PSD2) and other applicable rules, the release notes.
San Francisco-based Wish went public on Nasdaq at the end of 2020, with lackluster results. Its stock has remained depressed over the last six months. The platform brings personalized and “discover-based mobile shopping” experiences to its “millions” of users since 2010.