Wirecard Winding Down UK Operations, Railsbank to Buy Business

Wirecard Card Solutions Limited (WCS), the UK subsidiary of now collapsed German Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term Wirecard AG, has officially decided to wind down its business as local rival Railsbank agreed to purchase card technology and associated assets, including existing client business and some employees.

The confirmation came with a Financial Conduct Authority (FCA) announcement and a meeting is also scheduled for today by the WCS program managers to present the proposal of the ordinary migration.

The UK subsidiary holds an FCA’s e-money license that allows it to process Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term and also issue prepaid cards. Its license was briefly suspended in June following the revelation of missing €1.9 billion from the books of its German parent.

“On 28 August 2020, Wirecard announced that it was intending to wind-down its FCA-regulated business,” the regulatory announcement stated. “The business will continue to trade while alternative arrangements are being made with its card providers. Customers should contact their card provider with any queries.”

Insolvency Kicked Off

Notably, the German parent also filed for insolvency, and that was initiated with the job loss of around 730 employees, Finance Magnates reported recently.

Meanwhile, Railsbank's interest in WCS’s business is already known as the fintech reportedly placed bids to buy its UK business. The migration of the WCS customers to Railsbank is anticipated to be completed by November this year.

Ideally, the WCS cardholders should be able to use the services before and after the migration.

“We are working closely with Wirecard throughout this process to ensure that its customers are treated fairly,” the FCA noted.

The regulator also warned the WCS customers against the possibility of fraudsters trying to take advantage of the situation and dupe them.