Fintech payments unicorn in the UK pulls down as the first Covid-19 high wears off #

As the momentum from COVID-19-driven revenue growth wanes, payment infrastructure company Paddle has laid off staff.

After the COVID-19 outbreak caused sales to go up, the UK-based payment infrastructure and financial technology startup Paddle is laying off 8% of its more than 350 employees.

The firm has seen growth as more people and companies have moved to remote and digital work during the pandemic, for which the company supplies payment infrastructure to SaaS providers. But new problems have come up that hurt business in the opposite way. Rising inflation and interest rates have forced investors to postpone spending on fintech.

In a statement, Paddle co-founder and CEO Christian Owens wrote: “During Covid-19, we were the beneficiaries of the world shifting to a more remote and digital way of working. Many software companies moved to Paddle, including those who had never sold globally before, and the software companies we already worked with saw incredible levels of growth as the world adopted their products.”

During this time, the company’s transaction volume has more than tripled.

“This week has been a tough one at Paddle, as we said goodbye to 8% of our team,” said Owens. “Some incredibly talented folks are leaving the business this week, and I’d encourage you to hire any of them.”

During the COVID-19 epidemic, the financial technology industry has seen an increase in the use of digital services to help people continue to work and fulfil their daily responsibilities. As a result, more and more companies and individuals are using cloud computing and financial technology.