HSBC is shutting down its international payments app Zing — which it sought to position as a rival to Wise and Revolut — just over a year after launching the platform.
Zing was launched in January last year as a platform for people to hold digital currencies and send or spend money in the UK and abroad. The decision to shut the platform, first reported by Financial News, is part of the bank’s “simplification” strategy, it said.
“Following a strategic review of Zing within the HSBC Group and after careful consideration, we have made the decision to close Zing and integrate its underlying technology platform into HSBC,” the bank said.
A source close to the company told Reuters the decision could put as many as 400 jobs at risk. HSBC did not immediately respond to a request for comment.
The move follows a change of CEO in July last year as Georges Elhedery took over from Noel Quinn.
It marks the latest failure of a traditional bank to launch a successful fintech product. Natwest shut its digital offering Bó in 2020 just six months after launching. Barclays discontinued its mobile payments app Pingit in 2021.
Zing’s closure is a stark contrast to fortunes at Wise and Revolut.
Wise reported that profits before tax rose 229% to £481m in its latest annual accounts, showing the year up to 31 March 2024. Revolut hit a $45bn valuation in August last year after it was granted a banking license and became Europe’s most valuable startup.
Read the orginal article: https://sifted.eu/articles/zing-hsbc-closure-news/
