The founder of London-based financial technology firm Guavapay has resigned from his directorial position as the company prepares for a significant legal confrontation with global payments giant Mastercard. This development comes amidst ongoing regulatory challenges and financial pressures facing the cross-border money transfer specialist.
Leadership Change Amid Legal and Regulatory Challenges
Orkhan Nasibov, an Azerbaijani entrepreneur and Russian university graduate who established Guavapay in 2017, has stepped back from his leadership role. A company spokesperson cited "fatigue and health-related reasons" as the primary factors behind his departure. This move occurs just as Guavapay faces a winding-up petition filed by Mastercard on Christmas Eve, which could potentially force the fintech into liquidation if unresolved.
Mastercard Legal Action and Financial Implications
The court hearing initiated by Mastercard, one of Guavapay's largest creditors, is scheduled to commence imminently. Mastercard has declined to comment on the proceedings. According to recent filings, Guavapay reported a turnover of £23.4 million in 2024, representing a near-doubling from the previous year, alongside a pre-tax profit of just under £2 million. However, the company's financial stability has been compromised by recent regulatory interventions.
FCA Intervention and Operational Disruption
In September, the Financial Conduct Authority (FCA) compelled Guavapay to suspend onboarding new customers and halt acceptance of new funds into its MyGuava App and MyGuava Business platform. This action stemmed from regulatory "concerns" regarding customer due diligence procedures and fraud prevention measures. The FCA's intervention has severely impacted the company's primary revenue streams, creating substantial operational and financial challenges.
A Guavapay spokesperson stated: "The business experienced an immediate and significant disruption to its primary revenue streams, which has placed the company in a very challenging financial position while it continues working to meet its ongoing obligations." The spokesperson further noted that the situation has generated considerable stress and uncertainty among the company's 500-plus employees.
Company Expansion and Recent Developments
Despite these challenges, Guavapay has continued certain business activities. Late last year, the company established a subsidiary in Azerbaijan, which subsequently received an e-money licence to commence operations earlier this year. Additionally, in December, the firm presented a rug to City of London policy chief Chris Hayward, though the significance of this gesture remains unclear amidst the company's current difficulties.
The combination of regulatory scrutiny, legal action from a major industry player, and leadership changes presents a complex challenge for Guavapay as it navigates this critical period in its corporate history.
