PayThru Clients Battle for Funds
Clients in Limbo: The Tale of Malta’s Insolvent E-Money Firm
Imagine this: You’ve just received your salary, but when you try to withdraw it from your e-money account, you’re met with an ominous message – ‘Insufficient Funds’. You call your e-money provider, only to be told they’ve gone bust. This isn’t a scene from a dystopian film, but the reality facing hundreds of clients of Malta’s now insolvent e-money firm, PayThru Ltd.
From Thriving to Troubled
PayThru Ltd., based in the bustling streets of Birkirkara, was once a thriving fintech company. It offered e-money accounts, payment processing, and currency exchange services. Clients ranged from individuals to businesses, both local and international. But in late 2021, the Malta Financial Services Authority (MFSA) stepped in, citing ‘serious concerns’ about the company’s financial health.
In January 2022, the MFSA appointed a liquidator, triggering a wave of panic among PayThru’s clients. Many found themselves unable to access their funds, with some reporting balances in the tens of thousands of Euros. The MFSA has since assured the public that clients’ funds are protected under the Financial Instruments Act, but for many, the wait for their money continues.
Clients Left in the Lurch
Among those affected is Maria*, a 55-year-old retiree from Msida. She used PayThru for her monthly pension payments. “I’ve been trying to get my money out since January,” she says, “but all I’ve been told is that it’s ‘under investigation’. I’m a pensioner, I can’t afford to be out of pocket like this.”
Businesses are also feeling the pinch. John**, a local online retailer, used PayThru for his payment processing. “I had over €15,000 in my PayThru account when they went under,” he says, “That’s money I could be using to grow my business, but now it’s just stuck in limbo.”
What Now?
The liquidation process is ongoing, with the liquidator, PKF Malta, working to recover and distribute funds. But with PayThru’s assets frozen and clients’ funds spread across multiple banks and jurisdictions, it’s a complex task.
MFSA has advised clients to fill out a proof of claim form, but many are left wondering if they’ll ever see their money again. “It’s a waiting game now,” says Maria, “But I just hope they find a way to get our money back.”
For now, the future of PayThru’s clients’ funds remains uncertain. But one thing is clear – the collapse of this once-thriving e-money firm has left a trail of financial uncertainty and frustration in its wake.
*Names changed to protect privacy.
