Paynetics buys slice of Wirecard UK and Ireland

The fintech has purchased Wirecard UK’s corporate card portfolio following the payment processing firm’s fall from grace.

Late last week payment provider Paynetics confirmed that it has acquired some of Wirecard’s assets in the UK and Ireland for an undisclosed sum.  

The fintech will take Wirecard UK’s corporate customers on board, offering them payment processing and card issuing services.  

Valeri Valtchev, co-founder of Paynetics, said: “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.” 

Following the sale, Paynetics has started communicating with and transferring over its new customers, powering a range of services for its new clients such as employee benefits, corporate expenses and social welfare.  

Neil McKenna, vice president of global strategic partnerships & business development at Wirecard, said: “We are delighted to have signed an agreement to sell our corporate payout card portfolio, originally acquired from Citi over three years ago, to Paynetics.” 

“We have been very pleased by the positive reaction from our corporate clients in the face of this unique situation. Paynetics will no doubt bring fresh life to this valuable portfolio and we are confident this deal will result in a win-win-win for all involved.” 

Paynetic’s purchase comes just under two months after the sale of some of Wirecard’s UK assets to banking platform provider Railsbank. 

Railsbank purchased the assets and technology of Wirecard Card Solution, the UK arm of Germany’s Wirecard, for an undisclosed amount, with the remaining assets either being sold or wound down. 

Wirecard’s woes first made the headlines back in June when the fintech’s audit uncovered a €1.9bn black hole on its balance sheet, something that former CEO Markus Braun, who was arrested, and subsequently released on bail, for fraud, described as “fraud of considerable proportions.”  

As well as the missing billions, Wirecard had also been subject to a special audit as a result of an investigation by the German authorities over alleged market manipulation.   

Following the discovery of the missing money, the FCA froze Wirecard’s UK activities, plunging dozens of fintechs into disarray, including the likes of Revolut, Curve, Pockit and ANNA Money.