Financial Services, Fintech, Good for Business, Latvia, Lithuania

International Internet Magazine. Baltic States news & analytics Wednesday, 23.09.2020, 15:02

Lithuania's PayRay plans entering Latvia

BC, Vilnius, 12.12.2019.Print version
Lithuanian factoring company PayRay plans to launch its online bank's business in the middle of 2020 after being granted a banking license earlier this month, informed LETA.

The company plans to hire at least four new people and also has plans to expand to Latvia.

Mindaugas Stasionis, a deputy director PayRay, says the company plans operations abroad, with Latvia as the first direction.

"Latvia is the first expansion zone as it’s a small and concentrated economy. It has slightly more banks but small and medium enterprises have little access to funding sources," Stasionis told journalists in Vilnius on Thursday. "We will be entering Latvia with the same lending services."

Renato La Fianza, managing director at PayRay, said Lithuania was picked for good business conditions, a lowr unemployment level, a small debt-to-GDP ratio, the euro and a stable political situation.

PayRay plans to provide online services of fixed-term deposits for natural persons of the middle of 2020.

"It will be the only product we will offer to private clients. We will do that online without opening any physical branches. We plan to remain a small, niche organization focused on very clear activities," Stasionis said.

Paulius Joksas, chief operating officer at PayRay, says factoring will remain the company key service. In his words, a new player's entry into the very concentrated banking market in Lithuania will increase competition.

Following the assessment and proposal of the Bank of Lithuania, the European Central Bank granted PayRay a banking license in early December, authorizing it to receive deposits and other repayable funds.

The company started its activities in Lithuania in June, 2018 as a private limited liability company (Vilnius Factoring Company), providing factoring and other working capital financing services.

Its factoring portfolio is valued at 28 mln euros and its services are used by 150 companies. The company incurred a loss of 941,500 euros last year.

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