Paypercut Secures €5 Million Seed Investment to Transform Online Payments in Central and Eastern Europe

Paypercut, a pioneering fintech company based in Europe, has recently announced the successful closing of a €5 million seed funding round. This funding round was co-led by notable investors including Concentric, Passion Capital, and Araya Ventures, with additional contributions from other venture partners. This latest round raises the company's total funding to €7 million and is set to significantly bolster its efforts in accelerating growth across Central and Eastern European (CEE) markets.

Purpose of the Funding

The capital raised will primarily be utilized to bolster Paypercut's expansion across CEE, enhance its existing market presence, and facilitate the development of new products and services. Particularly, a portion of the funds will be dedicated to meeting the financial requirements needed for obtaining an Electronic Money Institution (EMI) license from the Central Bank of Ireland. This license is crucial for Paypercut as it seeks to solidify its status as a regulated payment service provider, enabling it to hold customer balances directly.

Co-founder and CEO Stoil Vasilev emphasized, “CEE has historically been overlooked by the payments industry, perceived as a fragmented market with intricate local regulations. Our goal with Paypercut is to rectify this situation, and this funding will allow us to expedite our growth and implement a comprehensive payment infrastructure that truly meets the needs of merchants in the region.”

Paypercut’s Innovative Platform

Since its inception and initial funding of €2 million in July 2025, Paypercut has evolved from a simple Buy Now Pay Later (BNPL) aggregator to a comprehensive payments platform. The service currently supports over 200 active merchants across eight different CEE markets. With its unique offering, Paypercut facilitates online merchants to accept payments through a single unified integration. This eliminates the need for separate contracts or different providers, thus simplifying the transaction process.

Among its features, Paypercut allows merchants to accept various payment methods and offers a streamlined process for multiple BNPL options at checkout. The platform also includes capabilities for managing billing, payouts, and settlements across multiple currencies from a single interface, greatly reducing operational complexities for businesses looking to expand into new markets.

Key Innovations in Payment Processing

One of the most significant updates announced by Paypercut is the launch of the Express Checkout feature, set to roll out this quarter. This functionality enables customers to complete their purchases directly from the product page, bypassing the need to navigate to a shopping basket. By integrating one-tap payments via Apple Pay and Google Pay, alongside biometric authentication, the new feature aims to drastically reduce mobile checkout abandonment, a common challenge in e-commerce.

This capability not only makes for a more user-friendly experience but also enhances security, as card information will not be stored on merchants' servers, leading to reduced chargeback rates. For online businesses in CEE, where mobile-first strategies are crucial, Express Checkout represents a significant advancement in payment technology.

Addressing CEE's Unique Payment Landscape

Paypercut's strategic goal is to address the longstanding inefficiencies associated with cross-border payments in Central and Eastern Europe. Historically, businesses in the region have been burdened with high transaction fees and lengthy processing times, particularly when dealing with non-euro markets. In fact, analyses estimate that businesses across these markets spend over €4 billion annually on cross-border transactions, with transfers frequently taking several days due to cumbersome legacy systems.

To resolve this issue, Paypercut is not only enhancing payment facilitation but is also planning to innovate within the realm of stablecoins, aiming to streamline transactions for high-volume corridors through their already established payment infrastructure. Stoil Vasilev noted, “Merchants prioritize swift, cost-effective, and secure transactions, and stablecoins enable us to deliver all three across the CEE region.”

Conclusion

As Paypercut prepares to utilize this newly acquired funding, its vision to become the default financial infrastructure for CEE businesses appears increasingly attainable. With a dedicated focus on overcoming the region's payment barriers and a robust platform designed to cater to the specific needs of local merchants, Paypercut is on a promising trajectory to redefine payment processing in Central and Eastern Europe.

With this round of funding, the company not only solidifies its commitment to local merchants but also sets the stage for significant advancements in the fintech landscape, addressing the evolving needs of a diverse and dynamic market.