In a major strategic move, the UK consumer payments firm Zilch has acquired Lithuanian challenger bank Fjord Bank, securing a coveted European banking licence and setting the stage for an accelerated expansion across the continent. The deal marks the beginning of a potential acquisition spree as the company progresses towards a long-anticipated public listing.
Strategic Acquisition Fuels European Ambitions
Philip Belamant, Zilch's chief executive, explained that the primary driver behind the acquisition of Fjord Bank was to obtain the regulatory foundation needed for rapid growth. "We needed a regulatory umbrella that would allow us to go and move really fast throughout Europe as we roll out," Belamant told City AM. He emphasised that the deal was "expressly not about banking" in the traditional sense, but a means to an end for its core payments business.
"We're not looking to build some huge big balance sheet net interest margin, a kind of lazy deposits business here," he stated, clarifying that Zilch remains focused on its payments forte. The acquisition brings not only the licence but also a "fantastic team" from Fjord Bank, which reported a notable turnaround, netting €1.16m (£1.01m) in profit by Q3 2025 versus a loss the previous year.
Corporate Finance Strategy and IPO Pathway
Belamant confirmed that the Fjord deal positions Zilch to "continue at pace with our corporate finance strategy and our bigger plan for the business." This strategy is well-funded, following a $175m debt and equity raise in November 2025 led by KKCG, earmarked for strategic mergers and acquisitions. A "substantial sum" from this fundraising remains available for future opportunities.
The fintech is widely tipped for a public debut, with Belamant having previously described the idea of a London listing as "fantastic." He hinted that more fundraising could occur en route to this goal: "We expect [fundraising] certainly may be the case… and then of course we continue towards a public agenda."
Navigating the UK Regulatory Landscape
While the European licence allows Zilch to 'passport' services and open branches in the UK, the company is also engaged with the UK's Financial Conduct Authority (FCA). Zilch already holds two FCA licences in the UK, having secured its payments licence in December 2025.
Belamant acknowledged the challenging UK regulatory environment, where deregulation efforts have waned. City AM revealed that only six e-money licences were granted in the first half of 2025 despite 25 applications, a hurdle that has even delayed giant Revolut's banking licence approval. When asked if Zilch faced similar concerns, Belamant said, "I think that's a very fair point… our strategy doesn't end here." He confirmed the company is in "ongoing discussions" with the FCA regarding a UK banking licence.
This acquisition strategically arms Zilch with the regulatory firepower to push its consumer payments model across Europe, solidifying its foundations as it marches towards becoming a publicly-traded company.
