UK peer-to-peer payment app VibePay has collapsed into liquidation after billionaire investor Nick Candy and other backers refused to pump in more money. The shutdown wiped out around 40 jobs and ended a six-year journey for a fintech that once dreamed of becoming Britain’s answer to Venmo.
What Happened to VibePay and Why Did Investors Walk Away
1 Candy Ventures and other investors pulled the plug on investing in the peer-to-peer payment app. The decision came after a strategic review that followed the exit of founder and CEO Luke Massie in December 2025. 1 A spokesperson for Candy Ventures said: “Following the departure of founder and CEO Luke Massie in December, the board of Vibe conducted a strategic review of the business and its funding requirements. The findings were shared with key investors in January, who decided not to commit further capital.”
The board concluded that liquidation was the only option left on the table.
1 Around 10 staff were made redundant in an online call weeks ago, following around 30 redundancies in 2025. That means roughly 40 people lost their jobs in total over a painful 12-month stretch. 1 One axed staff member said: “I am very upset, we believed we had built a really strong product.”
VibePay fintech app liquidation UK peer-to-peer payment collapse
The Banked Acquisition That Never Actually Closed
A huge part of VibePay’s downfall traces back to a deal that looked like a lifeline but never crossed the finish line.
2 Banked, which is backed by Bank of America, announced it had snapped up VibePay, the peer-to-peer payments and messaging fintech founded by Luke Massie, who grew up on a deprived council estate in Preston, England. 4 The acquisition was awaiting FCA approval, after which the deal was expected to complete. 2 The all-share deal would have seen Nick Candy’s investment vehicle take around a 25 per cent stake in the combined group. 6 Banked reportedly had a valuation of roughly $180 million while VibePay had previously raised £12 million in investment.
But the deal quietly fell apart. Sources say it collapsed during the due diligence process carried out by Banked. Neither company has confirmed the exact reasons. With no buyer and no fresh cash, investors had nowhere left to turn.
Luke Massie: The Council Estate Kid Who Built VibePay
VibePay’s story is impossible to separate from its founder.
15 Massie has spoken in the past about his tough childhood being brought up as one of five children in a Preston council estate and selling sweets to school friends to make extra money. 9 While he was 17 and studying for his A Levels at Cardinal Newman College in Preston, he set up his first business with £3,000 he saved up. 9 Within 11 months the teenager sold the PPI company for £94,000 and Massie was on his way.
He went on to create Vibe Tickets, a fan-to-fan ticket marketplace. 9He won the backing of high profile entrepreneurs, including Sir Richard Branson, who he met after making it to the final three in the VOOM 2016 Virgin Media competition. 9However, a year later, he hit his first significant bump in the road when Vibe Tickets went into administration after plans to raise additional funds did not come to fruition.
15 As a result the business pivoted away from tickets to creating a payments platform, and so VibePay was born.
Here is a quick timeline of VibePay’s journey:
- 2018: VibePay founded by Luke Massie
- 2019: First version of the app launched
- 2024: Raised additional £5 million in funding, total reaching £12 million
- April 2025: Banked announces acquisition of VibePay
- December 2025: Luke Massie steps down as CEO
- January 2026: Investors refuse further capital after strategic review
- March 2026: VibePay enters liquidation
Who Backed VibePay and How Much Was Lost
The financial losses are significant. 3VibePay raised £5 million in fresh funding in late 2024, including investment from property mogul Nick Candy, bringing its total to £12 million overall.
3 Its other investors include UK entrepreneur Scott Fletcher and AIM-listed Vela Technologies. YouTube star and DJ Vikkstar was also among the backers.
Candy Ventures was the single largest shareholder in VibePay and had invested millions in the company over several rounds. 28Nick Candy is a billionaire British luxury property developer and politician, who has been the treasurer of Reform UK since December 2024.
VibePay is not the first high-profile tech bet that has gone sour for Candy Ventures. 28The Times previously pointed to “a series of disastrous investments in tech start-ups.”
Key Numbers at a Glance
Detail Figure Total funding raised £12 million Active users (at peak) 250,000+ Staff made redundant in 2025 ~30 Staff made redundant in 2026 ~10 Year founded 2018
What VibePay’s Collapse Says About UK Fintech Right Now
VibePay’s death is not an isolated incident. It lands during a rough stretch for British fintech startups.
39 Fintech investment in the UK fell by 21% in 2025, despite a global increase. 39 In the UK, $10.97 billion was invested in fintechs during 2025, compared with $13.35 billion the previous year, marking its lowest level since the Covid pandemic in 2020. 38 Open banking barely grew in 2025, new investment has been falling since 2022, and profitability is a challenge. That is the exact space VibePay was operating in. 40 Roughly 73% of venture-backed fintech startups still fail within three years. The numbers are brutal, and they show that even startups with famous backers and passionate teams are not immune to the funding winter.
For founders in the open banking space, VibePay’s collapse offers a hard lesson. A strong product alone is not enough. Without a clear path to profit and a deal pipeline that actually closes, even well-funded startups can run out of road fast.
VibePay wanted to be the app that changed how Britain pays. It had the users, the vision and a billionaire champion in its corner. But a failed acquisition, a departing founder and investors who lost patience brought it all crashing down. For the 40 people who lost their jobs, and for anyone who believed in the mission, this is a painful reminder of how fragile the startup dream can be. If you have thoughts on VibePay’s story, drop a comment below and share your take with the community.
