The UK-based financial technology company Ipagoo can’t pay its debts and has gone into administration, according to Business Insider. The fintech company offered multi currency accounts and a debit card to its consumers and was aimed towards those that make international transfers and travels throughout Europe.
Ipagoo was burdened with debt and other problems. They went insolvent to protect the company from its creditors and to allow it to be restructured.
The news came just days after the UK’s Financial Conduct Authority ordered Ipagoo to stop all activity after it was discovered that they were having problems segregating customer money, which is an FCA requirement.
Ipagoo had several problems before the FCA order to stop business that was already causing it to collapse. The company had very little working capital and lost $2.9 million last year. Competition in the cross-border currency exchange was hurting the company as well.
A number of financial technology companies have gone into administration. The FCA is monitoring the industry closely so that all companies operate by industry regulatory requirements. Regulators all over the world are clamping down on the industry as well.