Banking Circle has announced the establishment of a branch in the Czech Republic, strengthening its offering in Europe and building on the company's mission to develop a local clearing network for all major currencies, marking another significant step in the payments infrastructure provider's strategic expansion across Central and Eastern Europe.
With the new branch, Banking Circle will be able to provide local Czech koruna (CZK) payment capabilities for customers around the world, helping to support global customers in accessing this dynamic Central European market. In the Czech Republic, Banking Circle will focus on serving small- to medium-sized banks, payment service providers (PSPs), and fintechs that require reliable, native payment capabilities to serve their own customers effectively.
Expanding to the Czech Republic represents an important milestone for Banking Circle as it continues to expand its presence and capabilities in Europe. The company is also opening a branch in Poland and has plans to grow further in the region, highlighting its strategic focus on building out local currency capabilities that enable seamless cross-border payments for financial institutions worldwide.
The news also follows Banking Circle joining the Czech Fintech Association, an industry group designed to support innovation in financial services to make the Czech Republic a world leader in fintech. Banking Circle is already helping Czech-based Fidoo grow from a local fintech to an SME bank in Europe, demonstrating the practical impact of its infrastructure and expertise in supporting the growth of innovative financial services providers.
The Czech Republic represents a highly innovative market in the global payments ecosystem, making it an attractive location for Banking Circle's expansion. Instant payments are rapidly increasing in popularity among Czech businesses and individuals, with the Czech National Bank processing 27% more transactions in the first half of 2025 compared to the same period in 2024 and covering 99% of the market, reflecting the country's advanced digital payments infrastructure.
The Czech National Bank also purchased Bitcoin and other digital assets for the first time in its history in 2025, investing USD1 million to create a test portfolio of digital assets based on blockchain technology. This forward-looking approach by the central bank underscores the Czech Republic's openness to financial innovation and emerging technologies, creating a favorable environment for companies like Banking Circle that are building next-generation payment infrastructure.
Banking Circle has operated on a cross-border basis in the Czech Republic since December 1, 2019, serving customers through its European banking license. The Czech branch received regulatory authorisation to begin operating on December 1, 2025, and is expected to commence full operations, including direct CZK payment capabilities, local bank accounts and multi-currency virtual IBAN solutions, later in 2026.
The establishment of a local branch will enable Banking Circle to offer enhanced services compared to its previous cross-border operations. Direct CZK clearing capabilities will reduce settlement times and costs for customers, while local bank accounts will provide businesses with the ability to receive and send payments as if they were domestic Czech entities, improving the customer experience for their own end users.
Mikkel Grønlykke, President at Banking Circle, characterized the development as an important milestone in the company's global growth journey: "This latest achievement represents an important milestone in Banking Circle's global growth journey. As we continue to build a clearing network for all major currencies, establishing a presence in such an innovative European market strengthens our ability to support financial institutions worldwide."
Grønlykke emphasized the strategic significance of the Czech market, noting that "the Czech Republic is rapidly becoming a hub for digital financial services, making it a natural next step in our ambition to deliver local payment capabilities on a global scale. Our steady expansion in Europe places Banking Circle in a strong position as it approaches the crucial next stages in its growth."
Tomáš Novotný, General Manager at Banking Circle, highlighted the practical benefits for customers: "Opening a branch in the Czech Republic is a significant moment for our European strategy and for the customers around the world that we support in this market. From banks and PSPs to fast-growing fintechs, organisations globally are seeking partners who can deliver reliable, native payment capabilities."
Novotný explained that the new branch will enable Banking Circle to help businesses integrate more seamlessly into the local ecosystem: "Our new branch will allow us to bring precisely that, helping businesses integrate more seamlessly into the local ecosystem. We're proud to invest in a market that is rapidly emerging as a leader in digital finance, and we look forward to deepening our partnerships and contributing to the Czech Republic's dynamic fintech landscape."
For Banking Circle's customers – which include banks, payment service providers, and fintech companies operating globally – the Czech branch will provide a crucial infrastructure component for serving customers in Central and Eastern Europe. The ability to clear payments in local currency reduces foreign exchange costs and settlement risk, while local bank accounts enable faster payment processing and improved reconciliation.
The expansion into the Czech Republic is part of Banking Circle's broader strategy to build a comprehensive global clearing network that enables financial institutions to offer seamless cross-border payment services to their customers. By establishing local presence in key markets, Banking Circle can provide the infrastructure that allows its customers to operate as if they were local banks in multiple jurisdictions, without the need to establish their own banking licenses and infrastructure in each market.
The Czech market's advanced digital infrastructure and progressive regulatory environment make it an ideal location for Banking Circle's expansion. The high adoption rate of instant payments and the central bank's openness to digital assets signal a market that is receptive to innovation and well-positioned to serve as a hub for digital financial services in Central and Eastern Europe.
Banking Circle's expansion also comes at a time when the Czech financial sector is experiencing significant growth and diversification. Alternative financing channels, including crowdfunding and non-listed corporate bonds, have expanded rapidly, while traditional bank lending has rebounded strongly following the interest rate environment normalization in 2024 and 2025.
The establishment of the Czech branch follows Banking Circle's successful expansion into other European markets and reflects the company's commitment to building infrastructure that supports the growth of innovative financial services providers. By providing local clearing capabilities, Banking Circle enables its customers to compete more effectively with established local banks while maintaining the flexibility and innovation that characterize fintech and digital banking services.
Looking ahead, Banking Circle's presence in the Czech Republic is expected to support the continued growth of the country's fintech sector and facilitate greater integration of Czech businesses into global payment networks. The combination of local clearing capabilities, multi-currency accounts, and Banking Circle's global network will enable Czech fintechs and international companies serving Czech customers to offer more competitive and efficient payment services.
The Czech branch represents another step in Banking Circle's mission to democratize access to banking infrastructure and enable financial institutions of all sizes to offer sophisticated cross-border payment services to their customers. As the company continues to expand its network of local clearing capabilities, it is positioning itself as a critical infrastructure provider for the next generation of global financial services.