How Paypercut is reinventing BNPL for the underserved CEE Market

Ahead of today's announcement, I sat down with Paypercut co-founders Stoil Vasilev and Gareth Walsh. These two experienced fintech operators helped scale SumUp from a startup to a $10 billion global payments giant. They're back with a bold new mission: to unleash the power of Buy Now, Pay Later (BNPL) for small and medium-sized merchants across Central and Eastern Europe (CEE).

Their new venture, Paypercut, has already made waves: the company just raised €2 million in pre-seed funding, a figure that marks the largest early-stage round in recent history for the region. Backed by Robin Capital, Passion Capital, RTP Global, Tuesday Capital, Angel Invest Ventures and several well-known angel investors, Paypercut is targeting a deeply underserved market with a product that could shift the balance of power for small merchants in Central and Eastern Europe and beyond.

Read on to find out more about the opportunity Paypercut sees in the CEE market, the challenges they're solving for merchants and consumers, and where they’re heading.

About Paypercut

Paypercut is a payments aggregation platform that gives SMEs access to competitive Buy Now, Pay Later (BNPL) terms, previously reserved for large enterprises. Paypercut's BNPL product boosts approval rates for customers and conversion rates for merchants by simultaneously routing payment requests through multiple BNPL (Buy Now, Pay Later) providers. At the same time, BNPL providers gain better access to the fragmented SME market, creating a win-win scenario across the ecosystem.

"Big retailers get the best terms. SMEs don't. We're changing that."

— Stoil Vasilev

From SumUp to Paypercut

After helping scale SumUp into a $10 billion fintech giant, Paypercut co-founders Stoil and Gareth weren't ready to retire just yet.

Instead, they saw a gap in the market and an opportunity to build again with their own team, this time with a focus on the often-overlooked Central and Eastern European region.

"We just started off saying, 'Let's do something together,'" recalls Gareth Walsh. "We had this shared skill set, and we began looking at the market to see what aligned with our experience. The common thread was scalability, and for us, as payments people, it was obvious that payments made sense."

"If you're building a business," Gareth adds, "the best place to be is right where the money moves. That's where you can create real value."

When I asked them about the most significant lesson they learned at SumUp, Gareth said, “We learned that you, the founder, are the glue. You must articulate a strong vision and then find the right people to carry it out."

A return to the swashbuckling days

All three co-founders have lived the scale-up journey before. Their time at SumUp taught them how to anticipate growing pains and avoid common pitfalls.

He reflects on the culture shift at SumUp over time: "Our old CFO used to say that in the early days, SumUp was like a pirate ship, we were sailing the Caribbean, chasing treasure wherever we could find it. Now it's more like a cruise ship, and cruise ships need a very different kind of crew."

With Paypercut, Gareth says, they're back to being "swashbuckling adventurers," navigating new waters with the freedom to chart their own course.

How does the BNPL product work?

As Stoil says, "large retailers have access to all payment solutions and favourable terms, but SMEs (revenue of €100,000 to €10 million per annum) face significant premiums and limited options."

Paypercut negotiates with BNPL providers to secure optimal terms for smaller merchants. This strategy offers higher approval certainty by routing transactions through multiple providers, benefiting both merchants and end customers.

"We weren't tied to an idea initially. We wanted to build something scalable—and with people we liked."

— Gareth Walsh

"Merchants need more payment options, including instalments. We believe alternative payment methods are the future," says Gareth.

Why this market, now?

Today, BNPL providers in the CEE region face two significant challenges: securing listings on payment gateways (which is often tricky, as there are typically only one or two gateways per provider) and achieving low conversion rates (with only about 20% of applicants being successful).

"The CEE region is a forgotten region despite incredible talent."

— Gareth Walsh

Paypercut's aggregation service enables a single call to multiple providers, increasing conversion rates for merchants and enhancing the experience for BNPL providers.

While fintechs are thriving in Western Europe and North America, CEE remains a largely untapped frontier. Local SMEs often face inflated rates and limited financing options, particularly when it comes to alternative payment methods.

The vision beyond BNPL

Though BNPL is the entry point, Paypercut's ambitions don't stop there. The company is preparing to apply for a E-money license in Ireland, paving the way for future products, such as prepaid cards and stablecoin-based transactions.

"We're focused on BNPL now, but we want to be at the forefront of stablecoins, the digital euro, and consumer-facing products."

— Stoil Vasilev

"We believe a pre-seed round will only take us so far," says Gareth. "Buy Now, Pay Later (BNPL) is our first foray into the market to demonstrate our team's capabilities and offer a strong solution for the region."

The bigger goal for Paypercut is to secure a license, become self-sufficient, and explore various payment acceptance methods. BNPL is our top priority, and the team will consider stablecoins and other innovations as the world evolves.

"In the long term, we recognise two sides to transactions: those who accept payments and those who pay, both with unique needs," Gareth continues. The current strategy involves integrating these aspects, tailored to the region.

Their longer-term roadmap includes building a PCI DSS-compliant checkout platform and expanding into Turkey, a market with a rich but insular payments ecosystem.

Why Robin Capital?

Gareth was quick to add a shout-out to Robin Capital. "You, Robin, excel at community building, offering more than just capital. We were oversubscribed and selected investors based on their ability to provide value beyond financial returns.

Robin Capital stood out in this regard, with initiatives like the trip to Baden-Baden and the WhatsApp group connecting founders and LPs, fostering invaluable connections and support. This network is a key differentiator."

"Sometimes you don't see your blind spots as a founder, and Robin is very good at pointing them out."

– Stoil Vasilev

Stoil added that he enjoys being challenged. "Robin Capital was also the first to commit funds and support Paypercut, connecting us with key shareholders like Concentric." There was no doubt that Robin Capital was the fund Paypercut wanted for the long term.

In a region long ignored by global fintech giants, Paypercut sees possibility. With a proven team, a clear vision, and the momentum of a standout pre-seed round, they're not just following trends; they're shaping the future of payments in CEE. I’m so excited to see where they go next.

Quick Fire Round

Tool you can't live without?

"Miro." — Gareth Walsh

Founder or startup you admire?

"Daniel Klein, SumUp founder." — Stoil Vasilev

Recharge ritual:

"Playing chess." — Stoil Vasilev

Best advice you’ve ever received:

"Do the job before you get the promotion. Better to ask forgiveness than permission." — Gareth Walsh

Paypercut is actively expanding into Bulgaria, Greece, Romania, the Czech Republic, Hungary, Poland, Slovakia, Slovenia, and Turkey. Their message to merchants and BNPL providers is straightforward: if you want a more efficient and equitable payment solution in the region, please reach out here: https://paypercut.co/#contact