The MiCA (Markets in Crypto-Assets) Regulation significantly reduced the number of licensed crypto companies in Europe. At the same time, banks and other regulated entities became more interested in servicing crypto companies. The net effect is that demand for crypto services has increased while the number of players offering them has decreased.
Nexpay and Nexdesk occupy a unique position in this ecosystem as well-established and fully licensed companies that provide seamless integration between fiat and crypto payment rails.
Cross-border payments made simple
Nexpay is a licensed EMI in Lithuania, offering dedicated IBANs and payment processing services such as SEPA, SEPA Instant, and SWIFT. Its sister company in Latvia, Nexdesk, is a MiCA-licensed crypto-asset service provider.
“Offering both solutions lets our customers rapidly execute cross-border transactions that previously might take weeks at a massive cost through SWIFT,” says Evelina Bulgak, CFO and member of the Management Board at Nexpay. “When customers hold both fiat and crypto with Nexpay and Nexdesk, they can simply convert euros to stablecoins and transfer them to the final location. It takes only minutes, at a fraction of the cost.”
Last chance: Get your tickets for Baltic Fintech Days May 13
Maturing fintech landscape in the Baltics
Crypto companies in Europe have found it challenging to adapt from an unregulated to a regulated business. Many haven’t survived, with much of the culling occurring in Lithuania.
Nexpay headquarters are in Vilnius, Lithuania, where the team focuses mainly on AML, compliance, and the necessary resources, while the development and IT teams operate from Riga, Latvia. The company treats both Lithuania and Latvia as home.
“The fintech landscape in Lithuania has moved beyond the startup stage into a more mature phase,” says Evelina. “Nexpay has operated as a regulated company for nearly 10 years, so maintaining the same mindset in our new crypto brand isn’t difficult.”
While Lithuania’s focus has shifted to stabilising its massive fintech ecosystem, Latvia is cranking up efforts in the startup sector. It now has 127 fintechs that pay over €90 million in taxes.
Evelina considers the Baltics as an interconnected market: “Each Baltic country is relatively small, so growth in one naturally spills over into the others.”
Last chance: Get your tickets for Baltic Fintech Days May 13
Working with unique business models
Nexpay serves companies with unique business models, such as innovative startups, digital businesses, gaming platforms, and blockchain companies.
“When it comes to unique business models, the risk analysis requirements and efforts can be too demanding and complex for a bank,” Evelina says. “On the contrary, we have specialised in these industries for years, so we can understand the business models and give them the hands-on attention they need.”
An EMI must be as strict as a bank when it comes to KYC and AML, she says. The difference is that an EMI is usually willing to look at a proposal, while a bank may reject it out of hand.
Next strategic steps
Continued attention to product development and compliance is key in Nexpay’s future strategy. “You can survive without a fancy new feature or two, but you can’t survive without a well-functioning product and the right licences,” says Evelina.
The constantly evolving landscape of EU regulations means that any fintech, especially one related to crypto, must be “crazy agile” to survive.
Nexpay is working on expanding its product offering by adding USD and other major currency accounts, payment initiation and other services.
The company is also actively pursuing strategic partnerships. One example is a collaboration with Magnetiq Bank, which will streamline the safeguarding of client funds, while payment processing is handled by Nexpay. This will be particularly valuable for companies operating under MiCA. “As you can see, EMIs are really maturing and becoming a solid partner or an alternative to banks,” Evelina says.
