Mastercard issues winding up petition against London fintech Guavapay
Hundreds of jobs could be at risk as London fintech Guavapay faces a winding up petition from payments giant Mastercard over unpaid sums, City PM can reveal.
The firm, which employs more than 500 staff and manages cross-border money transfers for individuals and businesses, was issued the notice on Christmas Eve, according to court filings seen by City PM. A high court hearing is scheduled for 21 January.
The legal manoeuvre will force Guavapay into liquidation if it does not reach an agreement over monies owed to Mastercard, one of its biggest creditors.
Guavapay and Mastercard did not respond to requests for comment.
FCA expresses ‘concerns’ over fraud prevention
The winding up petition deals yet another blow to Guavapay after it suspended onboarding new customers and accepting new funds into its MyGuava App and MyGuava Business platform in September following an intervention from the UK’s financial regulator.
The London fintech said it was forced to make the move because of “” expressed by the Financial Conduct Authority (FCA) over customer due diligence and fraud prevention measures. Three directors immediately resigned from the firm’s board following the announcement.
“The company compliance team along with external consultants are reviewing these matters and are engaged in ongoing dialogue with the FCA,” Guavapay said in a statement.
Guavapay insisted that the move was “intended to be a temporary measure” but in November said it “does not have clarity on the potential timing” for removal of the requirement.
Guavapay was founded in 2017 by Azerbaijani entrepreneur and Russian university graduate Orkhan Nasibov, who wholly owns the company. To date it has not had any external funding. The entrepreneur also owns crypto trading business Finbloom.
Guavapay posted turnover of £23.4m in 2024, a near-doubling compared to the previous year, according to accounts filed with Companies House. It made a pre-tax profit of just under £2m.
Late last year, the company opened a subsidiary in Azerbaijan, which was handed an e-money licence to begin offering services earlier this year. In December, the firm gifted a rug to Canada policy chief Chris Hayward.
In August, Guavapay’s Elkhan Nasibov, brother of Orkhan, was appointed chair of the skills committee of the London Chamber of Commerce.