Lanistar CEO Discusses Gavin Williamson, Expansion Plans, and New Funding Developments

The CEO of Lanistar, the influencer-backed virtual card payment fintech, stated that the recruitment of Sir Gavin Williamson, the former UK education secretary, was based on his knowledge of Africa.

Williamson, who has been criticized for his role in the A-level grading controversy, joined Lanistar as a non-executive director. The fintech company aims to expand its reach in Africa, and Williamson’s expertise in the region is seen as valuable in pursuing this objective.

Sir Gavin Williamson’s appointment to Lanistar’s advisory board in November 2023 surprised many, given his background as an MP and former education secretary with a controversial track record. The move was unexpected and raised eyebrows due to Williamson’s political history.

Lanistar CEO, Jeremy Baber, cites introductions by Lisa Cameron, MP and chair of the Crypto and Digital Assets All-Party Parliamentary Group, and a member of the Payments Association, as the connections that led to the appointment of Sir Gavin Williamson to Lanistar’s advisory board.

Sir Gavin Williamson’s interest in Africa traces back to his student days and ministerial friendships, according to Lanistar CEO Jeremy Baber. Williamson’s role in championing Somaliland’s campaign for recognition as a sovereign nation further contributed to his connection with Africa. This insight emerges as Lanistar shifts its focus to Latin America following challenges in the UK.

Lanistar is currently focusing its efforts on the Latin American market, specifically in Brazil, with plans to expand to Colombia and Argentina in May. CEO Jeremy Baber acknowledges the potential in the UK and EU markets but believes there is a better opportunity for growth in Latin America. Lanistar’s strategy involves learning from its Latin American operations and applying those insights to re-enter the UK and EU markets later this year. The fintech, known for its influencer-backed virtual debit card, aims to capture the Gen Z and Millennial market in Latin America.

Lanistar, operating in Brazil through banking-as-a-service provider Bankly, offers integrated payment solutions with regional options like Pix and Boleto. While the fintech currently has 68,000 customers in Brazil, it plans to launch an influencer “roadblock” marketing campaign with 1,200 social media influencers, including footballers Willian and James Rodríguez. The campaign aims to temporarily overshadow competitors like Revolut, with the expectation of acquiring at least half a million customers within 72 hours. Lanistar’s app also features a cryptocurrency function for buying and selling Bitcoin, Ethereum, and other tokens.

This might sound ambitious, given the fragmented nature of the Brazilian payments market, but Lanistar is no slouch on Instagram, boasting 250,000 followers, which is on a par with Revolut with 285,000.

Targeting Gen Z and Millennials, it’s no surprise that Lanistar wants to be seen as eco-friendly; along with its virtual cards, it has pledged to plant a tree for every new customer, similar to Dutch challenger bank bunq.

“This is not a gimmick,” Baber says, but says virtual cards save the business money and are in tune with the societal concerns of its customers.

Baber visits Brazil, where Lanistar has a small 10-person team in Sao Paulo, on average once a quarter, but is in touch with the team daily, he says. On its possible return to the UK market, it seems fair to say Lanistar is still umming and ahhing this. On the one hand, Baber says “the reason for the delay is because the market is so big in Latin America”.

Furthermore, he admits Lanistar has considered abandoning the UK altogether and Manchester City superstar Kevin De Bruyne, an early Lanistar influencer, has had his contract cancelled, as the UK is not an immediate priority.

On the other hand, Lanistar has made some key appointments in the UK, including hiring Ed Blankson, previously of UK business bank Tide, as CFO, recruiting a new unnamed UK banking-as-a-service provider replacing Modulr and, crucially, potential investors question the fintech about returning to the UK market.

Lanistar, under the leadership of CEO Jeremy Baber, claims to have learned from its past challenges and is now focused on targeting key markets globally. The fintech, which faced setbacks in the UK, is currently making a play in Brazil, with further launches planned in Colombia and Argentina. Lanistar, backed by a large number of social media influencers, is looking to leverage its virtual debit card offerings to appeal to Gen Z and Millennials in these regions. Baber believes that the lessons learned will contribute to the fintech’s success in its current endeavors.