Report: Checkout.com UK’s Business Reports Fivefold Increase in Losses

Online payment processing platform Checkout.com has reportedly recorded a $126 million loss in its U.K. business.

The company was hit by reduced consumer spending and higher inflation, which led to stalled revenue growth, according to a Thursday (Feb. 15) report from Tech.EU, which cited unnamed sources.

Checkout.com’s revenue from the U.K. amounted to $246 million in the year ending December 2022, compared to $260 million in the previous year, Tech.EU said. Additionally, losses grew to $126 million, compared to $25 million the year before.

Checkout.com cited inflationary pressures, a decline costumer spending and customers returning to physical stores as reasons for their flat revenue, according to the report. It also cited reduced trading volumes among digital currency clients and the loss of unnamed merchant clients due to Brexit, Tech.EU said.

The payments firm reportedly attributed its losses to a rise in personnel expenses, with wages and salaries increasing from $70 million to $100 million and a deprecation and amortisation charge of $24.8 million.

Inflation continues to pressure consumers in the U.S. as well.

Prices were up 3.1% year over year in January and 0.3% month over month, PYMNTS reported on Tuesday (Feb. 13), citing the latest data from the Bureau of Labor Statistics (BLS).

The cost of shelter was up 6% year over year, while overall food prices increased 2.6% from a year ago. Grocery prices rose 0.4% month over month, while restaurant prices increased by 0.5% over the same time frame, according to the data from the BLS.

“The report has thrown some cold water on speculation that the Fed was going to cut rates sooner rather than later,” PYMNTS wrote.

Michael Barr, vice chair for supervision at the Federal Reserve, said Wednesday (Feb. 14) that it’s still too early to determine if the economy can have a soft landing, PYMNTS reported Wednesday. 

Barr acknowledged the challenges ahead, emphasizing the need to restore price stability without aversely impacting jobs or economic growth, according to the report.