Market Shift: FinTech Declines While High-Risk Surges
Looking back, the final week of May 2022 might be recognized as a pivotal moment highlighting the downturn in the broader tech industry, particularly within the FinTech space. After riding a wave of pandemic-driven growth, several major players began to stumble. Notably, FinTech giants Klarna and Bolt confirmed sweeping layoffs, followed shortly by PayPal. In contrast, high-risk payment processors appear to be thriving despite the turbulence.
Alex Leigh, co-founder of Total Processing, used this opportunity to invite former Klarna employees to apply for roles at his company via a LinkedIn post — a move that garnered attention.
E-Commerce Explosion Fuels High-Risk Growth
The global rise in online shopping, accelerated by the COVID-19 pandemic, continues to drive demand for flexible and risk-tolerant payment solutions. E-commerce revenues were projected to hit $5.42 trillion by the end of 2022. Cross-border commerce, which made up 15% of global sales in 2016, was expected to climb to 22% in 2022 — reaching an estimated $156 trillion.
This shift has significantly boosted demand for high-risk processors like Total Processing, which has capitalized on this momentum—at least for now.
About Total Processing
Founded in 2015 and headquartered in Manchester, Total Processing Limited (www.totalprocessing.com) is a UK-based provider of merchant services and high-risk payment solutions. Co-founder Alex Leigh is listed as the beneficial owner of the company. According to his LinkedIn profile, Total Processing is part of the KPMG Global Growth Program and runs one of the most rapidly expanding payment gateways in the European market.
FinTech vs. High-Risk: A Contrasting Reality
Mainstream FinTech unicorns like Revolut, Monzo, Bolt, and Klarna often operate under constant media scrutiny and investor pressure, yet many of them struggle to turn a profit. On the other hand, companies in the high-risk sector — such as Total Processing and MoneyNetInt — typically remain under the radar. These firms often rely on revenue-generated financing rather than external capital.
However, this sector also harbors questionable players. The collapse of iPayTotal, for example, left numerous merchants without access to their funds. While there’s a darker side to this space, a deeper dive would require a dedicated investigation.
Smart Move or Just Marketing?
Whether or not former Klarna employees ultimately join Total Processing remains unknown. Still, the gesture alone served as an effective public relations move, portraying the company as both opportunistic and supportive amid industry layoffs.