ByteDance, TikTok's parent company, is pursuing a EU payments license in Luxembourg

ByteDance, the parent company of TikTok, is seeking a payments license in Luxembourg to solidify its European operations. This move follows the withdrawal of its previous application in Ireland due to misleading regulators about bank accounts. By establishing PIPO Luxembourg, ByteDance signals its dedication to expanding in Europe, particularly as it faces potential U.S. bans. The company aims to reduce third-party costs and risks by owning its payment systems, aligning with its future U.S. expansion plans. Currently, TikTok relies on Stripe, Adyen, PayPal, and Worldpay where not licensed.

ByteDance's payments operations are growing rapidly, with its Singapore unit's 2023 revenue reaching $309 million from over $10 billion in transactions.

Source: The Information