PagoFX shuts down amidst strong competition

Karthik Subramanian

PagoFX, the payment transfer company that was promoted by Banco Santander, would be shut down on November 30 and no new users would be onboarded in the meantime.

Banco Santander to cut 13% of its branches in Spain this year

The company was being placed as a competitor to the payments transfer company Wise, but while Wise has gone from strength to strength and has also gone public to increase its presence and propel its growth, PagoFX has not had much traction since its launch 15 months ago. It had launched in the UK last December and had extended its services to Spain in the last few months but it seems that the business did not pick up despite all this expansion. The official account is that it is being shut down based on a “strategic review”.

“It has been decided to close the international money transfer service in the UK, Spain, and Belgium,” the bank stated. “PagoFX’s technology and resources will be used to support the wider PagoNxt Group and its customer proposition.”

PagoFX was supposed to be a standalone company and it was looking to get established within the European region with a business model similar to Wise as its customers in the UK and Spain were given debit cards which they could use to send money abroad. The company was targeting this service to SMEs but it came in as a surprise that its service never really took off. The payments and the remittances industry has been growing very strongly over the last few months with many investors pouring in funds to even startups as they view that the digital payments industry would be taking off in the future.

This shutdown should come as a jolt to Santander which would need to do some serious introspection on what went wrong in a business that was supposed to grow well and for which there is ample demand. It did seem to have some strong plans as it had extended its transfer services to Belgium recently, after pushing into UK and Spain, but it just seemed to fail to get any sort of attention or demand from the SMEs despite adding new currencies into the mix. While competitors like Wise continued to grow, PagoFX never really found its footing and that is going to be something that Santander would look into seriously before launching any new products in the future.


Read this next

Retail FX

US Retail FX brokers suffer steep fall in client deposits, racked up $46K

Retail FX deposits at US brokerages, which have been struggling to eke out a profit in a strict regulatory environment, dropped in March 2022 by $35 million, CFTC data showed.

Retail FX

eToro supports Immutable X (IMX), Livepeer (LPT) and Cartesi (CTSI)

Israeli social trading network eToro has added support for trading three new tokens. Immutable X (IMX), Livepeer (LPT) and Cartesi (CTSI) are the next coins to join eToro’s list of featured digital assets.

Executive Moves

LiquidityBook hires Fintech veteran Jonathan Cross to lead EMEA business

LiquidityBook, a provider of FIX and OMS trading solutions for both the buy and sell-side, has added Jonathan Cross to its business team for the EMEA region.

Retail FX

Interactive Brokers’ traders now have direct access to TradingView

Professional charting and trading platform, TradingView has integrated the US-listed brokerage firm Interactive Brokers as the latest online trading partner.

Digital Assets

This Web3 infrastructure provider is on the verge of a radical upgrade

The crypto industry fueled the anticipation of the arrival of web3 with the introduction of Decentralized Finance, Metaverse, and more. And today, that web3 is finding support from various developers looking to build and develop the space to extract the most benefits out of it.

Digital Assets

Crypto bots: trading assistant 

The cryptocurrency market is a volatile one, with huge gains and dramatic dips. However, the most informed traders can use automated tools to maximize profits while minimizing risks. 

Retail FX

Cryptos Seed Review – What Makes This Broker Stand Out (2022)

Read our Cryptos Seed review today to learn all you need to know about Cryptos Seed before signing up with the broker( – by Finance Feeds.

Institutional FX

Citadel goes live with FX NDFs trades on LCH ForexClear

“This builds on the strong growth at the service, which has historically been driven by a focus on margin efficiencies that will only increase with Phase 6 of the uncleared margin rules in September 2022.”

Digital Assets

Crypto platform Bitfrost registers as VASP in Gibraltar ahead of DLT License

“We’re now looking at the next steps necessary to obtain authorisation to operate as a fully regulated DLT or Virtual Asset Service Provider.”