UK Fintech Startup Paysme Ceases Operations

Paysme, a UK fintech startup with the ambition to build a comprehensive financial app for small businesses, is ceasing operations. The startup was the brainchild of former BNY Mellon banker, Derek Stewart, who founded the company in 2020.

Aiming for a Financial Super App

With aspirations to capitalize on the super app trend, Paysme aimed to offer an array of services in one application. This included mobile payments, e-commerce, digital banking, accounting, lending and insurance services.

Funding and Financial Challenges

Paysme managed to secure a £1 million investment in August 2021 through the private capital platform, Globacap. A year later, the startup received an additional £50,000 in seed investment. Despite this financial backing, the company faced significant challenges during and after the COVID-19 pandemic.

The founder, Stewart, announced the company’s closure on his LinkedIn profile. He revealed that, despite making a meaningful impact in traditional small business communities such as taxis, independent retail and sports clubs, the company was not in a strong enough financial position to grow further.

Paysme’s closure highlights the challenges faced by startups in navigating the economic effects of the pandemic, even with significant investment and a clear market need.