The UK has struggled to attract listings from payments and fintech companies in recent years, a trend the Financial Conduct Authority (FCA) is trying to reverse.
The FCA unveiled reforms on 5 August to simplify the UK’s IPO process, removing the seven-day waiting period between publishing a prospectus and releasing connected research. The UK financial watchdog says the gap has been adding market risk for issuers by forcing them to be exposed to volatility while research clears.
“We want the UK market to be an attractive place for companies to raise capital and grow. By making the UK listing regime more efficient, we are supporting the growth and competitiveness of UK capital markets,” said Jon Relleen, Director of Infrastructure and Exchanges at the FCA.
A requirement for issuers to share identical information with both connected and unconnected analysts is also being scrapped. The rule originally aimed to support independent research, but the FCA says it added cost and delays.
Firms can still choose to work with unconnected analysts, but it will now be optional rather than mandatory.
What this means for payments IPOs
The UK’s payments sector has had a rough run on public markets in recent years. CAB Payments lost more than 70% of its value within months of its 2023 listing after issuing a profit warning linked to FX corridor volatility.
PensionBee‘s 2021 listing also experienced issues as the float went ahead successfully, but the company faced liquidity and valuation pressure that persisted afterwards.
Payments companies carry disclosure loads that make research timing especially relevant, including regulatory exposure, FX flows, fraud controls and partner networks, all of which typically need explaining to investors before pricing.
The FCA’s changes aim to get the research to the market faster and with fewer restrictions on which analysts can access it, addressing a friction point in the listing process.
The US has been the preferred destination for many payments companies, with Klarna choosing the New York Stock Exchange for its IPO in September 2025 despite earlier debate over whether it would list in London or New York.
In the US, banks can publish connected research much earlier in the IPO cycle because there’s no equivalent to the UK’s 7-day cooling-off period, which the FCA has removed.
The US also doesn’t require issuers to give identical information to unconnected analysts, another area where the UK practice is bringing its rules closer in line with how the US operates.
Despite these changes, the US offers deeper liquidity and higher valuations for payments and fintech companies, one of the main reasons firms like Revolut and Checkout.com have looked west.
Why Revolut has looked to the US
Revolut has repeatedly suggested it would favour a US listing and, unfortunately for the FCA, the reasons aren’t confined to the process.
US exchanges like the Nasdaq have awarded technology and fintech companies higher valuation multiples than the London Stock Exchange and the US investor base trades in larger volumes, offering deeper liquidity for a company valued at around $75bn.
The UK charges a 0.5% stamp duty reserve tax on share purchases, which adds friction for public investors that doesn’t apply in the US, where trading carries lower overhead costs.
In the case of Revolut, its global ambitions also point toward the US. The UK-based fintech has expanded heavily outside Europe, including establishing operations in Mexico and pursuing a US banking charter, and a New York listing would align it with its technology peers.
However, a dual listing in both London and New York is reportedly under discussion. Wise announced it would complete a dual listing at the start of this year.
