After severing ties with Binance, the income of payment platform Unicorn Checkoutexperiences a decline.
E-commerce solutions provider Checkout.com was previously the most prominent startup in Europe, securing a $40 billion valuation due to collaborations with Binance and other digital currency exchanges. However, following Checkout's decision to terminate its partnership with Binance over money laundering suspicions, its revenue has taken a hit, dropping by 16% to $212 million, as per recent financial reports from Checkout's U.K. subsidiary.
Checkout attributed the revenue decline primarily to the termination of a major client in its 2023 fiscal report to the U.K.'s Companies House registry, without naming the client. As reported by Our Website in 2023, Checkout had warned Binance it would cease credit card transactions for the crypto exchange due to regulatory concerns.
Checkout's Chief Marketing Officer Rory O'Neill stated that the company would not discuss business relations with its merchants or clients. The company's focus has since shifted from cryptocurrencies to e-commerce and fintech sectors.
Binance was once Checkout's primary client, processing approximately $2 billion in transactions during a single month in 2021, according to an insider source. This led to Checkout raising a $1 billion round in January 2022, making its founder Guillaume Pousaz one of Europe's wealthiest individuals.
Binance responded with legal action against Checkout following the dissolution, but later in 2023, Binance's founder, Changpeng Zhao, pleaded guilty to money laundering charges and resigned as CEO in November 2023. The crypto exchange was subsequently fined $4.3 billion by the U.S. Department of Justice, while Zhao was penalized $50 million and sentenced to four months in jail.
Mutual fund giant Franklin Templeton subsequently reduced its valuation of Checkout to $11.6 billion, as per SEC filings. Due to its complex corporate structure, which involves a holding company registered in the British tax haven of Jersey and around 30 international subsidiaries, Checkout's financial health is difficult to assess. The company also transferred select assets and intellectual property to a new U.K.-based affiliate, Checkout Technology Limited, in 2023.
Combined losses incurred by Checkout's U.K. subsidiaries mounted to $258 million, up from $176.6 million in 2022. Checkout Technology also secured a $200 million loan from its Jersey-based parent company to bolster its finances.
As a private company, Checkout refuses to disclose its global revenue figures, stating that it is standard practice for such entities. However, Checkout acknowledged that the U.K. represents a small portion of its global operations and reported a 40% year-over-year expansion in 2024.
Checkout's wage bill topped its balance sheet, with its U.K. subsidiaries employing over 1,100 employees and maintaining a $159.1 million payroll, despite various rounds of layoffs and executive departures. Despite laying off several international offices in 2023, Checkout reported a global workforce of over 1,900 people.
Over the past 18 months, most of Checkout's senior leadership has departed, with names like Wolfgang Bardorf, Michael Weigand, Ott Kaukver, Kerry Van Voris, Céline Dufétel, and Nirupam Sinha leaving the company. Checkout's Swiss billionaire founder, Guillaume Pousaz, returned to the U.K. from the United Arab Emirates in 2023. Our Website also reported that Pousaz established a charitable foundation and family office in the tax haven of Jersey in 2023 and 2021, respectively. According to the filings, Pousaz remains the ultimate controlling party of Checkout.
- Guillaume Pousaz, the founder of Checkout, became one of Europe's wealthiest individuals due to the crypto exchange Binance being a major client of Checkout.
- Binance, known for its involvement in tech and crypto, was once Checkout's primary client, processing billions in transactions.
- Fintech startup Checkout, which had a partnership with Binance, saw a 16% drop in revenue after terminating the collaboration due to money laundering suspicions.
- Despite its focus shifting from cryptocurrencies to e-commerce and fintech sectors, Checkout Technology, an affiliate of Checkout, secured a loan from its parent company to bolster its finances.
- Guillaume Pousaz, the billionaire founder of Checkout, returned to the U.K. from the United Arab Emirates and established a charitable foundation and family office in Jersey.
