Lithuania-based fintech company PAYSTRAX officially launched in the UK on 21st November, positioning itself to be the next big innovation coming out of Vilnius’ burgeoning tech hub. Having received its Payment Institution Licence from the Financial Conduct Authority (FCA) earlier this year, PAYSTRAX provides card transaction acquiring and payment solutions for more than 500 merchants and retailers across the UK and Europe.
Established in Vilnius in 2018, PAYSTRAX is remarkable for its organic growth strategy, where it chose to be self-funded, rather than adopting the traditional approach of series funding and capital injection rounds. This model proved successful, as the company broke even after just six months and continues to be cashflow positive. The fintech reported an impressive annual gross revenue of £20m+ in 2022, with additional growth anticipated for this year.
Johannes Kolbeinsson, CEO and co-founder of PAYSTRAX stated, “Our aim is simple: to engage with a wide range of UK partners and merchants, providing efficient, high-quality acquiring services, while also harnessing data intelligence to deliver added value to our customers.” With its offices now based in Brighton, the company follows a suite of successful Lithuanian businesses, such as Nord Security and Vinted, intending to make a significant impact on the UK's tech scene.
Kolbeinsson, who was previously co-founder and CEO of Icelandic payment service provider KORTA PAY (now RAPYD Europe), emphasized the company's commitment to developing effective solutions. “Rather than just duplicate our operations in different countries, we focus on creating the best possible solutions from a central base which increases the processing efficiencies of merchants in other countries and therefore our own market competitiveness,” he said.
Despite the turbulent economic climate and a heavily congested fintech market, Kolbeinsson believes that now is the perfect time for the company to enter the UK market. He explained, “The UK is one of the world’s most important fintech hubs, and it was always our aim to enter the UK market after we cemented our foundation across Europe. Modern problems require modern solutions, and with the UK one of the fastest adopters in embracing the cashless society, we believe we are perfectly placed to offer merchants and retailers the technologies and means to accept evolving forms of payment.”
Over 500 merchants and retailers across the UK and Europe entrust PAYSTRAX to reduce the friction and time taken to adopt digital payment methods. The award of the Payment Institution Licence by the FCA in May 2023 reaffirms the company’s commitment to regulatory compliance, consumer protection, and denotes its dedication to providing reliable and efficient payment services in the UK.