Fintech payments giant Checkout.com just slashed its internal valuation by 70% to $12 billion, down from the $40 billion it commanded in 2022. The London-based company is using this dramatically reduced price to launch a share buyback program for employees, highlighting how the fintech bubble continues deflating across the industry.
Checkout.com just delivered a sobering reality check to the fintech world. The payments processor announced Friday it's launching an employee share buyback program based on a new internal valuation of $12 billion - a staggering 70% drop from the $40 billion it reached during its 2022 funding round.
The move reflects the harsh new math facing fintech unicorns as venture capital dries up and public market comparables tank. Stripe and PayPal have both seen their valuations hammered over the past two years, making Checkout.com's adjustment less shocking than inevitable.
"We are relentlessly focused on growth and innovation, particularly with the impact of AI and the expected rise of agentic commerce," CEO Guillaume Pousaz said in the announcement. But the numbers tell a different story about fintech's new reality.
Checkout.com processes billions in transactions annually for major clients including Coinbase, Pizza Hut, and H&M. The company competes directly with Stripe, Adyen, and PayPal in the crowded payments space where margins have compressed significantly.
The employee buyback program represents a lifeline for staff who've watched their paper wealth evaporate. According to reports from the Financial Times, Checkout.com had already quietly lowered its internal valuation to $11 billion in late 2022, suggesting management saw the writing on the wall early.
This isn't an isolated incident. The entire fintech sector is recalibrating after years of inflated valuations. Stripe allowed employees to sell shares at a $91.5 billion valuation in February - still down from its $95 billion peak. Revolut offered staff liquidity at a $75 billion valuation earlier this month.
The timing reveals how desperate private companies have become to retain talent. With IPO markets essentially frozen and acquisition appetite minimal, secondary share sales have emerged as the primary escape valve for employee equity. These programs let longtime employees cash out without forcing companies into premature public offerings.
