The Cologne payment ring start-up Pagopace agreed with the investor Carsten Maschmeyer in the TV show "Die Höhle des Löwen".

The investor, who had already built up the financial sales company AWD Holding, wanted to pump EUR 200,000 into the young company, which sells rings with a “built-in” credit card, and in return receive a 15 percent stake, plus a further 5 percent if internationalization succeed.

Archibald Preuschat

Editor in Business

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But nothing will come of it, the FAZ found out exclusively.

"Opinions on the strategic orientation of the company differed," said Pagopace co-founder Steffen Kirilmaz.

"Nevertheless, we are still in very good contact with the Maschmeyer Group, and Carsten Maschmeyer continues to support Pagopace as a mentor," he added in an interview with the FAZ.

Open to investors

The Cologne start-up is now open to investors and talks.

So far, the start-up has managed without venture capital, although the three co-founders, including Kirilmaz, Bernhard Wernberger and Lukas Schmitz, have invested their own money in the start-up.

But the topic of internationalization is not off the table.

Kirilmaz sees potential markets throughout Europe.

In addition to its own store in Cologne not far from the Neumarkt, which according to Kirilmaz attracts customers from all over Germany, the start-up is not planning any other stores of its own - not even in Frankfurt.

Schmitz reveals that Pagopace sells by far the most of its payment rings in the financial metropolis.

Even if the payment ring is still a means of payment that causes a stir, the appearance of the three founders in the TV show that was broadcast in the summer has helped the payment ring to gain even more popularity.

But even Pagopace co-founder Kirilmaz does not believe in a mass phenomenon – at least not yet.

"For that, the rings would also have to be available in electronics stores or jewelry stores."

Then the customer would have to activate his ring, which the start-up is now also selling in a wooden version, himself.

With an Android smartphone, that would not be a problem today, but not with the iOS operating system used by Apple.

The start-up is currently doing the linking of the ring and credit card for its customers so that they can be used at the same time once they have been received.

New partner makes it easier

In Germany, for example, only customers of Comdirect, Consorsbank and a dozen Volksbanks can connect their bank's debit or credit card to the Pago payment ring.

All other users only have a bridging solution.

After all, Pagopace now offers another convenient alternative: the British fintech Curve.

Its virtual credit card can be integrated into the payment ring and coupled with almost any credit card.

Miles or loyalty points can also be collected when paying with the Pago-Ring, for example.

In addition, you are always able to pay with the ring - within the credit limit stored on the linked credit card.

In addition, Curve also offers fee-free payments outside the euro zone in the free basic version - at least on working days.

With the previous partner Vimpay, an amount had to be transferred from your own bank account first.

An express top-up was not possible for customers of some banks, including ING.

Using the ring outside the euro zone in the free basic version was also associated with a foreign currency fee.