PaysTree Scam Allegations Fact-checked (2024)
Originally Syndicated on May 18, 2024 @ 10:16 am
PaysTree Ltd. is a UK-based payment system provider that serves customers in Europe and the CIS with electronic financial services. Many people have inquired about this service, which has its main offices in London.
PaysTree’s electronic payment system aims to streamline financial transactions worldwide by facilitating purchases and accepting SEPA and SWIFT payments. A personal private banker is allocated to each customer and organization to provide committed support.
However, some PaysTree users have voiced dissatisfaction, claiming the company takes advantage of vulnerable individuals. Customers allege that PaysTree fails to provide accurate information about charges and resorts to threats when customers refuse to pay.
What PaysTree is?
PaysTree Ltd. is an e-money provider regulated by the Financial Conduct Authority (FCA) since August 2018. It was founded in December 2017 by Latvian Mihails “Mike” Safro, who later left to establish another company called Xpate Ltd.
Currently, PaysTree is managed by Anselm Schmucki, a Swiss citizen, with directors Guntars Reidzans, Evija Meimane, and Stanislavs Caikovskis. The company has around 21 employees, mainly based in Latvia.
PaysTree, registered in England and Wales with Firm Reference 900900, offers e-money services to consumers and businesses across the EU and EEA countries. Their business model focuses on providing standard banking services with faster payments using IT solutions compared to traditional banks.
PaysTree: Key Data
| Hub operator | PaysTree |
| Business activity | e-Money Institution andMerchant Service Provider |
| Domain | https://paystree.com |
| Legal entity | PaysTree Ltd (UK) |
| Authorization | FCA-regulated e-Money Institutionwith reference no 900900 |
| Jurisdiction | United Kingdom |
| Related entities | payinter ltd d/b/a payinter (agent for PaysTree)Everyfin Ltd d/b/a everyfin (agent for PaysTree)Hawex Group Ltd d/b/a Hawex (agent for PaysTree)Paypugs Limited d/b/a PayPugs (agent for PaysTree)Sebes Technology Ltd, Cyprus, d/b/a SEBES TechnologyTiaplata Fintech Ltd, Canada, d/b/a TIAPLATAXpate Ltd d/b/a xpate regulated by FCA as EMI |
| Related individuals | Mihails Safro, Anna Zotova, Stanislavs Caikovskis, Evija Meimane, Guntars Reidzans, Oksana Zelepene, Kirill Baldakov, RussiaGerman(s) Juferova, Jakovenko, Stanislav(s) Jakovenko, Eugene Malahov, Aleksandrs Zelinskis, Mohammad Awada, Michael Charles Borrelli, Anselm Schmucki, Alisa Saltykova, UK |
What services does PaysTree provide?
PaysTree offers these four main services:
- Help with Foreign Company Registration: PaysTree assists in registering foreign companies.
- Setting Up Foreign Bank or Payment System Accounts: It helps in establishing accounts with foreign banks or payment systems.
- Auditing and Accounting Support for Foreign Businesses: Foreign businesses receive aid with auditing and accounting processes.
- Consultation on Taxes, CFCs, and International Legal Matters: PaysTree provides advice on tax-related issues, Controlled Foreign Corporations (CFCs), and other international legal matters.
How to Sign Up for PaysTree?
Opening an account involves two steps:
- Initial Phase: Gather and organize all necessary paperwork required for account opening.
- Final Account Creation Step: Submit the required documents to PaysTree.
Accounts are typically opened within 10 to 15 working days.
PaysTree follows the KYC (Know Your Customer) policy and may request additional documents. Failure to provide these documents may lead to delays or rejection of the account application without explanation.
PaysTree Account Opening Fees
To open a PaysTree account, you’ll need to pay a fee, which varies depending on your situation:
- Residents of EU/EEA and the United Kingdom: 10 EUR (with a possible extra 50 EUR for client verification).
- Visitors from Other Countries: 50 EUR.
- Law Firms with Offices in the UK and EU/EEA Zone: 250 EUR.
- Lawful Businesses with Foreign Registrations: 1500 EUR.
These fees cover the process of setting up your account and may differ based on your residency and business type.
PaysTree Reviews
“I had a terrible experience with PaysTree. They didn’t tell me upfront that registering for their payment system would cost 500 euros. Even when I said I didn’t want their service, they didn’t answer my questions until after I paid. When I finally created an account, I found out I had a negative balance of 500 euros! They’re scammers and extortionists. It was a horrible experience, and I wouldn’t recommend them to anyone.” – Sider Tecno
Conclusion
In May 2022, the first report about PaysTree, an e-Money Institution regulated by the FCA, and its network of companies and people surfaced. The network and PaysTree are managed by Latvians. One of PaysTree’s FCA-registered agents is The Hawex Group, and Swiss national Anselm Oskar Schmucki owns House PaysTree.
However, the company deceived customers by making false promises about PaysTree users and customers. Also, they don’t provide relevant information about their clients, and there are no positive reviews to confirm PaysTree’s legitimacy.
