Checkout.com’s Valuation Drops to $12 Billion as Fintech Faces Market Reset

Checkout.com, once one of Europe’s most highly valued fintech unicorns, has slashed its internal valuation to $12 billion as it prepares to launch a share buyback program for employees.

The London-headquartered payments firm announced on Friday that the buyback is aimed at providing staff with a much-needed path to liquidity, a move reflecting broader challenges across the global fintech sector.

From $40 Billion Peak to $12 Billion Today

Checkout.com’s new $12 billion internal valuation marks a sharp decline from its $40 billion valuation in early 2022, when it raised $1 billion in funding. Reports suggest the company lowered its internal estimate to $11 billion later that same year, signaling a steady adjustment amid changing market conditions.

This recalibration highlights the broader reset in technology valuations after the pandemic-era boom. With IPO markets frozen for nearly three years and venture capital flows tightening, fintechs are turning to internal valuations and private buybacks to retain talent and sustain momentum.

Employee Share Buyback: A Growing Trend

The buyback program will allow employees and early shareholders to sell a portion of their equity back to the company. Such programs have become increasingly popular among late-stage startups, especially as private firms stay unlisted longer than expected.

Checkout.com stated that it regularly reviews its internal valuation to align with its employee incentive program. By doing so, the company aims to ensure staff feel rewarded and motivated despite shifting market perceptions.

Competitive Landscape: Taking on Stripe, Adyen, and PayPal

Checkout.com competes directly with global payments heavyweights Stripe, Adyen, and PayPal. The company processes billions of dollars annually for major clients including Coinbase, Pizza Hut, and H&M.

Looking ahead, Checkout.com says it is on track to exceed 30% year-on-year core net revenue growth in 2025, with projected annual e-commerce payment volume reaching $300 billion.

CEO Guillaume Pousaz on Growth, AI, and “Agentic Commerce”

Founder and CEO Guillaume Pousaz emphasized the company’s commitment to innovation in a press statement:

“We are relentlessly focused on growth and innovation, particularly with the impact of AI and the expected rise of agentic commerce,” he said.

This suggests Checkout.com is positioning itself not just as a payments processor but also as a fintech innovator exploring artificial intelligence-driven commerce models.

Fintech Peers Follow the Same Path

Checkout.com is not alone in taking this route. Several leading fintechs have also allowed employees to cash out portions of their holdings in recent months:

Stripe announced in February a tender offer enabling staff and early investors to sell shares at a $91.5 billion valuation.

Revolut earlier this month gave employees the opportunity to sell shares in the secondary market at a valuation of $75 billion.

These moves highlight how liquidity programs are becoming a core tool for fintechs looking to reward staff loyalty while weathering extended private market cycles.

Challenges Ahead: Funding, Competition, and AI Investment

Despite steady revenue growth and strong client demand, Checkout.com faces several key challenges:

Fierce competition from global giants like Stripe and PayPal, which have larger war chests and deeper integration networks.

Capital constraints, as venture funding has slowed significantly compared to the record highs of 2021–2022.

Technology investments, with artificial intelligence and agentic commerce requiring heavy R&D spending, which could strain margins.

Balancing profitability with innovation will be crucial if Checkout.com hopes to regain higher valuations and attract fresh investor appetite.

Broader Context: A Fintech Reality Check

Checkout.com’s valuation drop illustrates a broader truth: the fintech industry is no longer riding the hyper-growth wave it enjoyed during the pandemic. Rising interest rates, cautious investors, and fewer IPOs have dampened enthusiasm.

Still, demand for digital payments remains robust as global e-commerce expands. Fintech players who can adapt to new technologies like AI while maintaining cost discipline are likely to emerge stronger in the next cycle.

Conclusion: Building for the Long Term

Checkout.com’s decline in valuation from $40 billion to $12 billion may seem dramatic, but it is also a reflection of the new reality for private fintechs. Despite this, the company continues to grow its core business, expand global partnerships, and push into AI-driven commerce.

By offering employees liquidity, Checkout.com is also sending a signal: while IPOs may remain elusive, the company intends to retain top talent and strengthen its foundation for the long run.

Whether this strategy will help Checkout.com reclaim its unicorn glory—or pave the way for a future public listing—remains one of the most closely watched questions in global fintech.