London-based fintech Guavapay has announced a temporary suspension of its UK services in collaboration with the Financial Conduct Authority (FCA) due to “significant challenges” with fraudulent activity.
In a statement on its website, Guavapay indicated that it is “unable to accept funds into its MyGuava App and MyGuava business platform with immediate effect until further notice.” The firm assures customers that their funds are “safe and protected,” allowing users to view their accounts and withdraw, transfer, and spend their money.
In a follow-up statement regarding the agreement with the FCA, Guavapay explained that during the initial launch phase of its e-wallet in 2024, it encountered substantial issues with fraudulent activity, receiving a high volume of fraudulent funds through its accounts. Additionally, the rapid growth of the business exceeded certain regulatory thresholds. Despite efforts to remain compliant, the scale of growth ultimately surpassed these limits.
Guavapay expressed regret for the inconvenience caused to customers and noted that it is working with the FCA to “make improvements.” However, the company did not specify how long the suspension is expected to last.