One of the darlings of the UK fintech industry, Checkout.com, has reported a five-fold widening of losses of its UK business to $126m while revenue growth stalled, as it was hit by reduced consumer spending and higher inflation.
Checkout.com, an online payment processing giant which competes against Stripe, reported revenues in the UK of $246 million in the year ending December 2022, compared to $260 million the year previous.
Losses widened significantly to $126 million compared to a $25 million loss the year previous.
The payments giant, founded by Swiss entrepreneur Guillaume Pousaz, is a global business and the Checkout.com figures published today refer only to its UK business.
Checkout.com has a presence in over 50 counties across Europe, North America, the Middle East and Asia Pacific and has 16 offices around the world.
It does not disclose group financial figures.
Customers of the London-headquartered fintech, which boasted a value of $40 billion in 2002 making it Europe’s most valuable startup, include Sony and Uber Eats.
On its stalled revenues, Chekcout.com cited rising inflation, reduced costumer spending and customers returning to physical stores.
It also cited lower trading volumes among digital currency clients and the loss of unnamed merchant clients due to Brexit.
On its increased losses, this was attributed to rise in personnel expenses, with wages and salaries increasing from $70 million to $100 million and a deprecation and amortisation charge of $24.8 million.
Checkout.com reportedly laid off around 80 staff in late 2023 with senior executives exiting the company, according to Sifted.
In his end of year blog for 2023, Pousaz cited the fintech's 40 per cent year-on-year growth across commerce and fintech, citing key account wins such as Sainsbury's and Henkel.
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