U.K. digital bank Monzo received permission from the U.K. Prudential Regulation Authority to operate in Ireland, The Irish Times reported Feb. 15, citing the challenger bank.

"This moment is particularly exciting because Ireland will be Monzo's first step outside the U.K., as we begin our journey to bring Monzo to the world," Thomas George, head of international at the bank, reportedly said.

The bank is likely to spend the coming few months establishing access to the necessary European payment schemes, but has no immediate plans to open an office in Ireland, the report noted. It is also eyeing expansion elsewhere in Europe as well as into the U.S.

The action follows a similar move by another U.K. challenger bank, Starling Bank.