Paynetics UK to acquire Wirecard UK and Ireland assets
Wirecard is continuing to dismantle its global business which is either getting disposed of or shut down. The moves come months after it disclosed financial fraud of €1.9 billion of cash which went missing through Wirecard’s books and later led the firm to file for bankruptcy.
In August, Wirecard Card Solutions Ltd, which is a wholly-owned subsidiary of Wirecard Acquiring & Issuing GmbH and part of the Wirecard AG group, had announced the wind-down of its FCA regulated business. It sold its UK operations to Railsbank.
Last week, The Monetary Authority of Singapore (MAS) had directed Wirecard entities in Singapore (Wirecard SG) to cease their payment services in Singapore. The MAS also directed the company to return all customers’ funds by 14 October 2020.
This week, its Bulgarian-headquartered non-bank payments company, Paynetics UK which is part of Paynetics Group has announced that it would acquire some of the assets of Wirecard UK & Ireland.
“The deal will see Paynetics work with corporate customers, who have previously relied on Wirecard for card issuing and payment services, to adopt Paynetics for the continuation of their existing card programmes,” the press release noted.
The company is an e-money institution which is licensed across the EU and is the principal member of Mastercard, Visa, SWIFT and SEPA. Under this acquisition, the company in its press release states that it “will provide its new customers with a fast, secure and seamless transition, together with a strategic product roadmap for the future development of these programmes, which until now faced the prospect of termination”.
The company has also appointed Mike Peplow as CEO of its UK business who was formerly Chief Operating Officer at Omnio Group and President of BancTec EMEA.
“This is a flagship deal for Paynetics and a crucial milestone for us in terms of our expansion in the UK and European markets,” said Valeri Valtchev, Co-Founder of Paynetics.