Apto Payments - a San Francisco based fintech company specialising in innovative card programmes - was looking to enter the UK market by supporting the launch of a cryptocurrency debit card.
Find out how BCLP helped Apto Payments successfully navigate the complex regulatory requirements imperative for the launch of their first-of-its-kind product in the UK.
Client: Meg Nakamura, Co-Founder & CEO
Company: Apto Payments
Location: San Francisco, Barcelona
Profile: Connecting people to their assets by launching innovative, customer-centric card programs, like the first-ever bitcoin debit card
Goal: Launch cryptocurrency debit card in the UK
Industry: Cryptocurrency, fintech, credit solutions, card programmes
Working in conjunction with Coinbase – one of the world’s leading cryptocurrency exchanges – this was Apto’s first venture into the UK market, where it would be providing the proprietary technology behind the card payment programme. Being a first-of-its-kind product, the launch of the Coinbase debit card was designed as a cutting-edge payment solution - giving Apto and Coinbase significant visibility among consumers and businesses.
The success of this launch would have a significant impact on the payment card market, and put Apto in an advantageous position for future fintech ventures in the UK. However, being a totally new product, this was complex territory for both Apto and Coinbase. In addition, a third party was brought in to facilitate the issue of cards, adding a further level of complexity.
In 2018, Stan Koppel, Regulatory of counsel in BCLP's San Francisco office, introduced Meg Nakamura, Co-Founder and CEO of Apto, to Marcus Pearl in BCLP's London fintech team. With extensive fintech experience, the team were well-positioned to act for Apto in connection with the launch of the UK's first-ever cryptocurrency debit card.
Given the uncertainty surrounding the regulation of virtual currency, careful consideration was needed with respect to potential regulatory requirements, such as that of payment services and electronic money. The team carried out a comprehensive analysis to ensure a clear understanding of the client's regulatory position.
A detailed knowledge of the products' structure including the operational processes was also necessary; negotiations involved operational, commercial, compliance and legal teams from each party – many of them in the US. Close collaboration, absolute transparency and clarity of communications were crucial throughout.
Collaboration across legal disciplines was also critical on such a complex, fast moving project. BCLP's London Data Protection team provided the necessary analysis of the data flows to make sure that the client was in a strong position in terms of its legal obligations and contractual commitments.
BCLP created bespoke agreements which enabled the launch of the cryptocurrency debit card and will support Apto’s ability to continue to innovate and provide new payment card solutions across the global market.
The successful launch of this unique debit card significantly raised the UK brand profile of Apto. It delivered widespread media coverage, including front page of the FT’s Companies & Markets section and the CNN website. Having first mover advantage, the launch positions Apto as a go-to technology partner for companies looking to deliver card programmes in the UK market and beyond.
Concepts across the cryptocurrency market are developing rapidly, yet practical payment solutions remain rare in the UK. This innovative card fills the gap. By enabling cardholders to access their cryptocurrency as easily as they would their bank account, Apto's platform paves the way for similar payment solutions in the future - cards which enable instant access to any type of digital stored value. The launch will have a significant impact in the UK payment card market, as it not only highlights Apto’s capabilities, but also that cryptocurrencies are fast maturing.
"With fintech expertise on both the US West Coast and in London, BCLP were able to deliver exceptional continuity of approach."
Meg Nakamura
Co-Founder and CEO of Apto Payments
"We were thrilled to have helped Apto Payments launch in the UK last year. This has always been an exciting and complex project and will continue to be so as payment systems evolve and clients want new cashless systems in 2020."
Marcus Pearl
Partner, BCLP
Apto's agreements were designed as a platform that can be adapted for similar card programmes in the future with other Apto clients – whatever the store of value.
Our in-depth fintech industry expertise and integrated global fintech team was fundamental in ensuring the agreements' structure achieved our client's commercial objectives.
Invaluable insight, analysis and internal expertise were seamlessly delivered across all relevant areas of law. This enabled clear understanding and an appropriate approach to be taken across data protection, payment services, electronic money and virtual currency.
Looking to launch fintech solutions in the global payment services industry? Get in touch.
Marcus Pearl
