The founder of London FinTech Guavapay has stepped down as director as the company prepares for a High Court hearing today over a winding-up petition filed by Mastercard, which could force the firm employing more than 500 staff into liquidation.

Orkhan Nasibov, the Azerbaijani entrepreneur who launched Guavapay in 2017, has resigned due to "accumulated stress, fatigue and health-related reasons", a company spokesperson said. The resignation comes as the FinTech battles financial difficulties triggered by regulatory intervention last September.

Mastercard issued the winding-up petition on Christmas Eve over unpaid sums owed by Guavapay, according to court filings. The payments giant, described as one of Guavapay's largest creditors, declined to comment. If no agreement is reached, the legal action will force the cross-border payments company into liquidation.

The Financial Conduct Authority ordered Guavapay to suspend customer onboarding and new fund deposits in September following concerns over customer due diligence and fraud prevention measures. Three directors immediately resigned from the board following that intervention.

A Guavapay spokesperson said the regulatory action caused "immediate and significant disruption to its primary revenue streams, which has placed the company in a very challenging financial position whilst it continues working to meet its ongoing obligations". The spokesperson added that the situation had created "considerable stressful impact on the team, given the uncertainty and operational pressure".

In a statement on its website, Guavapay attributed its difficulties to fraudulent activity during the early launch phase of its e-wallet in 2024. The company told Finextra that it "faced significant challenges with fraudulent activity, with a high volume of fraudulent funds being received through its accounts". The firm added that rapid business growth led to certain regulatory thresholds being exceeded.

Despite the troubles, Guavapay posted turnover of £23.4 million in 2024, nearly double the previous year's figure, according to Companies House filings. The company recorded a pre-tax profit of just under £2 million.

Nasibov wholly owns Guavapay, which has received no external funding to date. The company opened an Azerbaijani subsidiary last year, which received an e-money licence to begin operations. Nasibov also owns crypto trading business Finbloom.

Guavapay has said customer funds remain "safe and protected", with users able to view accounts and withdraw money. However, the firm has provided no indication of when normal services might resume.

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