Lunar Transitions to a Specialized Entity for Enterprise Payment Services

Introduction

A single application programming interface (API) will allow for seamless operations across Denmark, Norway, and Sweden. The bank is currently in the process of establishing the Moonrise business, which promises to ease financial connectivity for payment enterprises.

Challenger banks and fintech companies are expecting that this initiative will assist them in overcoming the obstacles that prevent them from entering the market in the Nordic region. This will enable them to compete in a region that has traditionally been dominated by legacy institutions.In the meantime, the separation is intended to ensure that Lunar can continue to build on its success as a challenger in retail banking while also boosting Moonrise. This is accomplished by providing each player with the freedom and resources they require throughout the process.

According to Lunar, the European BaaS market is anticipated to witness dramatic expansion and is anticipated to reach a value of one hundred billion euros by the year 2030.

For example, Lunar Banking Services already processes more than 10,000 transactions every single day and has a transaction volume run rate of five billion euros.

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Industry Comments

Ken Villum Klausen, CEO, Lunar, says: “The Nordic market is extremely profitable yet difficult to access. For decades, it has been dominated by the same players operating in a stale system. Moonrise is here to change that. By breaking down these barriers, we enable international fintechs and banks to access the Nordics.”

Adds Villum Klausen: “By taking the first step towards a dedicated focus through a separate entity, we can sharpen our focus on enterprise payments, scale faster, and ensure both Moonrise and our retail banking arm thrive independently.”

FAQs

1. What is the purpose of the Moonrise initiative? Moonrise aims to simplify financial operations across Denmark, Norway, and Sweden by providing a single API for payment enterprises, helping fintechs and challenger banks enter the Nordic market.

2. How will Moonrise help challenger banks and fintech companies? It will break down barriers that have made it difficult for these companies to compete in the Nordic market, allowing them to access a region traditionally dominated by legacy banks.

3. What is the separation between Lunar and Moonrise meant to achieve? The separation allows Lunar to continue growing as a challenger in retail banking while giving Moonrise the independence and resources needed to focus on enterprise payments and scale faster.

4. How big is the European BaaS market expected to grow? The European Banking-as-a-Service (BaaS) market is expected to reach 100 billion euros by 2030.

5. How many transactions does Lunar Banking Services handle daily? Lunar Banking Services processes more than 10,000 transactions per day, with a transaction volume run rate of five billion euros.

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Conclusion

Moonrise represents a significant step in transforming the Nordic financial landscape. By offering a single API for seamless operations across Denmark, Norway, and Sweden, it opens up new opportunities for challenger banks and fintech companies. With the European BaaS market set for substantial growth, initiatives like Moonrise are crucial in breaking down long-standing barriers, enabling international players to compete in a profitable yet challenging region.

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