London-based payment solutions provider Guavapay announced the temporary suspension of its UK services last week, saying in a company statement posted on 18 September: “Guavapay is unable to accept funds into its MyGuava App and MyGuava Business platform with immediate effect until further notice. This is a requirement that we have agreed with the Financial Conduct Authority (FCA).”
Guavapay says that during the temporary suspension, customers “will no longer be able to load or accept new funds into the MyGuava App or MyGuava Business platform, or create additional cards”. The company adds that customer funds “remain safe and protected in accordance with safeguarding obligations”, while also confirming that customers “will still be able to view their account and access transaction history” and can still “transfer and withdraw funds until existing balance is zero”.
“Guavapay deeply regrets the inconvenience caused to all its customers and partners as a result and will continue to provide updates as new information becomes available,” the company statement continues.
In a follow-up statement posted on 19 September, Guavapay provides some background on the decision, stating: “During the early launch phase of its e-wallet in 2024, Guavapay Limited (UK) faced significant challenges with fraudulent activity, with a high volume of fraudulent funds being received through its accounts.”
The statement continues: “The company responded by introducing multiple additional safeguards and enhanced fraud-prevention measures, which have already helped to significantly reduce such activity.
“Separately, the rapid growth of the business led to certain regulatory thresholds being exceeded. While Guavapay has worked to stay within the required limits, the scale and speed of growth meant that thresholds were ultimately surpassed. Both these factors have contributed to the action to effectively suspend our business, and are working closely with the FCA as we work to make improvements.”
Guavapay offers a personal finance app with features including multi-currency accounts, international transfers, virtual and physical cards, and budgeting tools. Its MyGuava Business solution provides a refined offering of these features for the company’s enterprise customers, as well as point-of-sale and acquiring solutions and a centralised merchant portal.
The company appointed former Royal Bank of Scotland exec Guy Noble as its UK CEO in March this year.
Source: https://www.fintechfutures.com/
