In a move to expand its global reach, CAB Payments Holdings has announced the establishment of a new office in Amsterdam, the Dutch capital.
The publicly-listed company in the cross-border payments and foreign exchange market has secured a payment service provider license from the local central bank, enabling it to offer services across the European Economic Area (EEA) from its new base in the Netherlands.
CAB’s Amsterdam Office Established to Accelerate Growth Strategy
The newly opened subsidiary is run by CAB Europe BV, trading as CAB Payments Europe. Kostas Konstantis, a financial services professional with over 20 years of experience, will lead the entity's commercial activities as General Manager.
The company has also set up a Supervisory Board chaired by Tamara Monzon, an interim executive board member at Context Logics Collections and Vice Chair of the Supervisory Board at Uber Payments. Steven Marshall, Chief Partnerships Officer at Crown Agents Bank, will serve as the shareholder representative on the board.
"FX and payments to and from hard-to-reach markets are often expensive, slow, and opaque," said Konstantis. "CAB Payments Europe aims to solve this problem across the EEA.
The expansion into the EEA market is driven by client demand and is a crucial element of the company's global ambitions. CAB Payments Europe will leverage the parent company's established global payments network, scalable technology platform, and longstanding relationships to ensure efficient, secure, and transparent cross-border transactions.
“Our network, tech, and expertise means we can move money quickly, cost effectively, and transparently in complex situations, to complicated markets, for leading global organizations that uphold the highest standards,” Konstantis added.
According to the CEO, Bhairav Trivedi, Europe has long been seen as an important market for CAB. “We look forward to engaging with potential clients and moving money where it's needed,” he concluded.
Expansion Strategy Pays Off with 25% Income Rise
In February, the company disclosed its earnings for 2023. CAB Payments reported a 25% increase in gross revenue year-over-year (YoY), totaling £137.1 million, up from £109.4 million the previous year. This revenue boost stemmed from gains across all client divisions, notably with Wholesale FX and Payment FX revenues experiencing a 28% increase YoY.
Furthermore, adjusted EBITDA experienced a notable rise of 17%, amounting to £64.6 million, though there was a slight reduction in the adjusted EBITDA margin to 47%, down from 50% in 2022.
Over the years, many financial firms have relocated to Amsterdam. Among them is MUFG Securities, which made such a move in 2019. Numerous entities sought a new base after the UK announced Brexit. Nium, a real-time payments lender, also talks about opening an office in Amsterdam. Similarly, in February this year, the cryptocurrency exchange Bybit made such a move.
This article was written by Damian Chmiel at www.financemagnates.com.