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London-based payments platform Checkout.com has announced a new employee share buyback program, valuing the company internally at $12 billion. The move comes as fintech firms across the globe grapple with falling valuations and a slower path to public markets.

A Sharp Fall from the Peak

The new internal valuation represents a dramatic decline from Checkout.com’s $40 billion peak in early 2022, when the company raised $1 billion in a high-profile funding round led by prominent investors. Within the same year, reports suggested Checkout.com had already lowered its internal valuation to $11 billion, reflecting a cooling in the once red-hot fintech sector.

The decline mirrors broader market conditions. Rising interest rates, shrinking venture funding, and investor caution have pushed valuations of fintechs downward, particularly for those that had surged during the pandemic-driven digital payments boom.

Employee Liquidity Over IPO

The buyback program will allow employees to sell their shares back to the company, offering them a way to unlock liquidity without waiting for an initial public offering. Checkout.com stated that the initiative is designed to “provide a clear path to liquidity” for its staff, many of whom have been waiting years for an exit.

This trend has become increasingly common across the fintech industry. Stripe, for example, launched a $3.5 billion tender offer in February 2024, allowing early employees and investors to sell shares at a valuation of $91.5 billion. Meanwhile, Revolut recently gave staff an option to sell stock on the secondary market at a $75 billion valuation.

For Checkout.com, the decision signals a commitment to employee retention during a period where public listings remain elusive. Global IPO activity has slowed for three consecutive years, and fintechs—once prime candidates for blockbuster listings—have instead turned inward to provide staff with alternative exit options.

Competing in a Crowded Payments Market

Checkout.com remains one of Europe’s most valuable private fintechs despite the valuation reset. The company processes hundreds of billions of dollars in transactions annually for clients including Coinbase, Pizza Hut, and H&M. It competes directly with heavyweights like Stripe, Adyen, and PayPal, all of whom are battling to capture a larger share of the booming digital payments market.

CEO and founder Guillaume Pousaz emphasized that the company is continuing to focus on expansion, despite the valuation shift. “We are relentlessly focused on growth and innovation, particularly with the impact of AI and the expected rise of agentic commerce,” he said.

Checkout.com expects to surpass its goal of 30% core net revenue growth in 2025 and is forecasting $300 billion in e-commerce payment volume this year.

The Bigger Picture in Fintech

The story of Checkout.com reflects a larger shift in the fintech landscape. Once celebrated as some of the fastest-growing companies in the tech ecosystem, many fintechs are now being forced to confront more realistic valuations. Investors are demanding stronger profitability metrics rather than just growth figures.

Still, liquidity programs like share buybacks may help retain top talent by providing employees with tangible returns, even in the absence of an IPO. For staff at Checkout.com, the opportunity to cash in could serve as both reassurance and incentive, reinforcing the company’s commitment to long-term growth in an increasingly competitive environment.

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