Green fintech firm Tred is to shut down after four years, the firm’s co-founder said today, just four months after it received fresh investment from energy firm Ecotricity.

The Leeds-based business, which offered current accounts that offset any carbon customer spending has emitted via a tree planting scheme in Scotland, said changes to rules on push payment fraud had meant the operations of the business were no longer sustainable.

Writing on LinkedIn, co-founder Will Smith said: “Endings are hard, but the Tred journey was incredible…it’s time to close this chapter.

“Recent changes to financial regulations around Authorised Push Payment Fraud (APPF) have significantly impacted smaller disruptors like Tred, which we simply aren’t equipped to sustain.

“We’ve been part of something amazing and built something groundbreaking, with an incredible team of passionate, talented people. We couldn’t be prouder of what we’ve achieved together and the community we’ve built.”

Under the new Authorised Push Payment rules introduced by the Payment Services Regulator (PSR), which came into force on 7 October, there is a £100 excess on fraud claims, combined with a £85,000 cap on reimbursement payments.

The regulator said the limits would minimise financial harm to consumers while ensuring that caution is maintained in the system by payment services providers (PSPs).

In its most recent accounts, Tred had 16 employees and posted a loss of £1.6m.

It comes four months after the firm received investment from Stroud-based green energy firm Ecotricity, founded by millionaire Labour donor Dale Vince.

Vince said in September: “It’s high time businesses had access to banking that doesn’t cost the earth. Big banks are still pouring billions into fossil fuels… that ought to be criminal.

“Our investment in Tred is all about making money work for the planet, not against it. Tred’s approach to banking aligns perfectly with our mission to use business as a tool for change.”

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