Check It Out!: Checkout.com is the UK’s newest fintech top dog

January 28, 2022

3 min read

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What's going on here?

Digital payments company Checkout.com has become the UK’s most valuable fintech company, valued at $40 billion after raising $1 billion in its latest investment round.

What does this mean?

Founded by entrepreneur Guillaume Pousaz a decade ago, the UK-based company Checkout.com assists retailers in processing online payments via cloud-based software. Describing itself as a “full-stack” payments company, Checkout.com facilitates reliable digital payments using over 150 currencies. It specialises in processing international payments for large global commerce and services merchants such as Netflix, Pizza Hut and Shein as well as cryptocurrency trading platforms including Coinbase, FTX and MoonPay.

Global investor demand for payment companies has surged during the pandemic as consumers have been forced to shop online, significantly changing the way that financial services are used. Valued at just $5.5 billion in mid-2020, Checkout.com almost tripled its valuation in one year to $15 billion following a $450 million investment in 2021. This valuation has since increased by 167%  in the last year, with its recent $1 billion investment increasing  the value of the company to $40 billion. Pousaz’s company is now worth more than its British digital bank competitor, Revolut, valued at $33 billion.

What's the big picture effect?

The UK-based start-up has said that it plans to use its new injection of funding to scale up to meet demand in the US, launch new products in the online marketplace sector and play a significant role in the emerging Web3 space.

Web3 is defined as the next chapter of the evolution of the internet in which digital assets and emerging tech innovation such as blockchain and crypto play a key part (this follows Web2 which is the term used for the current use of the internet in the twenty-first century centered on social media). Checkout.com’s products are already utilised by the fan token provider Socios.com and the blockchain-based digital wallet Novi by Meta. The company plans to maintain its focus on supporting more crypto merchants and Web3-based businesses and has already begun testing new solutions to facilitate transactions using digital currencies.

Until now, Checkout.com has focused on its home market of Europe, the Middle East and Africa (EMEA). However, Chief Finance Officer Céline Dufétel stated that Checkout.com has “long-faced substantial demand to serve the US market”. Checkout.com is currently one of the only fully cloud-based platforms providing online payment processing for all major alternative payment methods in the US. Therefore, the fact that the US is one of the largest e-commerce markets in the world coupled with the pressure for online retailers to provide better and faster access to their products and services, means that the company’s continued expansion into the US seems appropriate. Now backed by substantial funding, the company is scaling up its products, infrastructure, employees and clients in the US. Pousaz said last year that while he was in no hurry to take Checkout.com public, the US would be the most likely market for an initial public offering.

Finally, Checkout.com plans to continue innovating and expanding its product roadmap. Last year, the company began to issue payouts which enabled its customers to pay money to cards and bank accounts internationally. Companies including TikTok and MoneyGram have been making use of this feature. Checkout.com intends to continue development in the online marketplace sector, offering products which are capable of servicing payments that take place on digital marketplaces.

Checkout.com’s 2022 e-commerce trends report states that payment diversification strategies such as digital wallet integrations, QR code scanners and buy now pay later options are “vital” if brands wish to increase sales. Therefore, the changing nature of what people buy combined with the popularity of digital assets will inevitably mean payment methods which facilitate such sales will boom. With Pousaz stating last year that Checkout.com is still in “chapter zero of our journey”, the untapped opportunities lying ahead for this company seem endless.

Report written by Lucy Reynolds

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