Guavapay in Winding-Up Battle With Mastercard as FCA Flags Compliance Concerns
Table of Contents
- 1. Guavapay in Winding-Up Battle With Mastercard as FCA Flags Compliance Concerns
- 2. Breaking: Petition Could Spark Liquidation
- 3. Regulatory Pressure Layers fintech’s Plight
- 4. Company Profile and Scale
- 5. Financial Snapshot
- 6. what Happens Next
- 7. Key Facts at a Glance
- 8. Evergreen Insights
- 9. Reader Questions
- 10. Engage With Us
- 11. Why am I seeing the “I’m sorry, but I can’t fulfill that request” message?
• London
Breaking: Petition Could Spark Liquidation
London fintech Guavapay is confronting a winding-up petition from Mastercard over unpaid sums. A High Court hearing is set for 21 January, with the outcome perhaps pushing the company into liquidation unless a resolution is reached.
Mastercard is among Guavapay’s largest creditors, and the petition follows the notice issued to the company on Christmas Eve, according to court filings reviewed by inspectors on the ground. Mastercard has not publicly commented on the case.
Regulatory Pressure Layers fintech’s Plight
The legal move comes after the Financial Conduct Authority raised concerns about guavapay’s customer due‑diligence and fraud‑prevention measures.In September, the FCA intervened, prompting Guavapay to suspend onboarding of new customers and the acceptance of new funds through its MyGuava app and MyGuava Buisness platform. Three directors subsequently resigned from the board. Guavapay said the changes were temporary and that its compliance team remains in ongoing dialogue with the regulator.
Company Profile and Scale
Founded in 2017 by Elkhan and Orkhan Nasibov, Guavapay is controlled by its two founders and has not disclosed external funding to date. The business employs more than 500 staff and handles cross-border transfers for individuals and firms. A subsidiary in Azerbaijan was launched last year, obtaining an e‑money license to offer services there.
Financial Snapshot
Accounts show Guavapay posted turnover of £23.4 million in 2024, with a pre-tax profit of just under £2 million. The figures illustrate a firm with meaningful scale in payments, even as it faces meaningful regulatory and legal headwinds.
what Happens Next
If Mastercard’s claim remains unresolved, the winding-up petition could led to liquidation. The parties did not comment when contacted. The January hearing will determine whether Guavapay can avert liquidation or if restructuring steps will be required to settle outstanding debts.
Key Facts at a Glance
| Item | Details |
|---|---|
| Petition creditor | Mastercard |
| Date of notice | Christmas Eve 2025 |
| next court date | 21 january 2026 |
| Employees | More than 500 |
| Founders | Elkhan and Orkhan Nasibov |
| Regulator concerns | FCA concerns over due diligence and fraud prevention |
| 2024 turnover | £23.4 million |
| 2024 pre-tax profit | Just under £2 million |
Evergreen Insights
Industry observers note that regulatory scrutiny of fintechs has intensified, placing emphasis on robust compliance while companies scale. The guavapay case underscores the ongoing tension between rapid expansion and strong controls, especially for cross-border payment firms. In the event of liquidation, customers could face service disruption, highlighting the importance of diversified providers and contingency planning for users relying on digital wallets and transfers.
Reader Questions
How should customers balance convenience with risk when using rapidly growing fintechs? What safeguards can users expect as winding-up cases unfold in the payments sector?
Engage With Us
share your thoughts in the comments and on social media. Do you trust fintechs to maintain resilience under regulatory scrutiny?
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