Exclusive: Santander’s PagoNxt to discontinue PagoFX app to refocus on trade services
PagoNxt, the payments fintech run by Banco Santander, will discontinue its international money transfer app PagoFX, with plans instead to integrate the technology into its trade services business.
Users of the app have been informed by email today that they will no longer be able to use the service to send payments after 30 November.
The company will continue to provide customer support and maintain the operational flows of payments originated before this date to ensure they are processed before the app is shut down and disconnected.
PagoFX was launched just last year in the UK, Belgium and Spain and provides cross-border payments services for individuals to send money across the globe.
Cedric Menager, CEO at PagoFX, said at the time of the app’s Spanish launch in December: “Our vision is to be the world’s most trusted and loved way to send money abroad and we want all our customers to feel confident about sending money overseas.”
FinTech Futures understands PagoNxt has now shifted its strategy and will instead redeploy most of the PagoFX assets and money transfer rails as part of its trade services business to offer small and medium-sized enterprises (SMEs) and corporates international payments, supply chain and trade finance solutions.
A PagoNxt spokesperson says: “We have ambitious plans to grow PagoNxt and expect to more than double revenues in the medium term, with an immediate focus on high growth segments such as merchant and trade services.
“To help support this growth, we have decided to integrate the PagoFX technology into our trade services business to leverage the fast and secure payment capabilities offered by the service.”
The firm also plans to offer its payments technology to Santander banks and third parties through API access, allowing banking entities and financial firms to bolt on the service and tap into its payment rails for international trade.
The spokesperson adds: “The technology will allow us to provide instant international payment services to clients both through Santander and third parties.”