UK Green Fintech Tred Shuts Down Citing APP Fraud Reimbursement Regulations as the Cause
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UK Green Fintech Tred Shuts Down Citing APP Fraud Reimbursement Regulations as the Cause

UK green fintech startup Tred is set to shut down its operations, citing new reimbursement rules concerning authorised push payment fraud as the reason for the closure.

Founded four years ago in Leeds, Tred developed a carbon tracking debit card and accompanying app that enabled users to track the environmental impact of their spending and receive personalized suggestions for minimizing their carbon footprints.

In 2021, Tred raised £1 million through a Crowdcube campaign, followed by an additional £600,000 in crowdfunding the following year.

The decision to wind down comes just four months after the startup received investment from Ecotricity, a Stroud-based green energy firm founded by Dale Vince, a notable Labour donor.

Tred co-founder Will Smith stated that recent changes to financial regulations regarding Authorised Push Payment Fraud (APPF) have greatly affected smaller innovators like Tred, which cannot sustain the new requirements.

The APP fraud rules, implemented in October by the UK’s Payment System Regulator, require firms to reimburse fraud victims up to a maximum of £85,000.