FinTech Paynetics has acquired the corporate payout card portfolio of Wirecard UK and Ireland.
Last time we reported on the Bulgarian payments company, Paynetics had just closed a €2.5m ($2.9m) funding round. At the time, we had no idea that the company would play a part in the history of the discredited FinTech giant Wirecard.
Wirecard collapsed in June following the news that $2.1bn of the German company’s finances was missing and part of an alleged global multi-billion fraud. Since the company filed for bankruptcy, several executives have been arrested, investigated and sought after by the authorities trying to unravel the fraud allegations.
Paynetics buying Wirecard UK’s payout card portfolio will enable it to work with corporate customers who have relied on the disgraced company’s infrastructure in the past for their card issuing and payment services.
“Through this acquisition, we’ve not only proven our technological competence and the industry’s confidence in our proposition, but also that our products and services are fit for purpose for large, corporate organisations,” said Mike Peplow, UK CEO at Paynetics.
“We’re operating within the most sophisticated financial services market in the world, and we’re proud to bring something different to the table. We’re a young, innovative company who can keep up with the high standards that our industry demands, but we also care deeply about our customers and will work with each of them on an individual basis to ensure that they are getting the best solution for their business.”
Valeri Valtchev, co-founder of Paynetics, added, “This is a flagship deal for Paynetics, and a crucial milestone for us in terms of our expansion in the UK and European markets. But it’s also a game changer for our new customers, who are now in a safe pair of hands and have the certainty of a clear roadmap ahead for their businesses. We are one of a few companies in Europe which, as a regulated FinTech, has the capabilities, expertise and technology to fulfil the needs of these clients, and the only one who could do so as quickly and efficiently as we are able to.”
Laura McCracken, EVP at Wirecard Global Sales and chairman at Wirecard UK and Ireland, said that the process had not been easy. “When faced with the difficult decision of sun-setting Wirecard’s corporate payout card business, Paynetics showed up as the white knight,” she said. “Their speed and agility enabled us to preserve numerous programs for our corporate clients and ensure minimal disruption to thousands of end users. More importantly, we were impressed by the capabilities, creativity, and vision that Paynetics brought to the table for this business. Long may it prosper.”
The deal marks the latest part of Wirecard being sold on, following its implosion this summer.
In August, Railsbank signed a term sheet to acquire Wirecard’s UK business. At the time, the deal was expected to close in November. The agreement would see Wirecard sell its card technology and associated assets in the UK and to effect the transfer of client relationships and certain employees to Railsbank.
In September, we reported that identity verification company IDnow planned to buy Wirecard Communication Services.
At roughly the same time, the news broke that a team from Wirecard’s innovation labs would join Berlin-based FinTech finleap.
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