Railsbank to acquire Wirecard Card Solutions UK

By Megha Bhattacharya

Railsbank recently announced that it is all set to acquire Wirecard Card Solutions card technology, client relationships, and specific employees in the UK, receiving the FCA’s support. The deal will accelerate Railsbank’s expansion across the UK and Europe, thus strengthening its position as a BaaS platform in Europe.

Railsbank issued a release stating that it will provide uninterrupted service during migration. It also stated that no accounts will be suspended or affected by the migration and that the customers are free to close their account at any time in accordance with the card T&Cs.

Tom Jennings, Managing Director, Wirecard Card Solutions, said, “In planning the future of the company, one of our key priorities continues to be that our valued customers get the best possible outcome. We believe that our solvent wind-down proposal, including the proposed sale of assets to Railsbank, will achieve that key priority. Our hope is that our program managers will support our proposal, and we can move forward in a positive way for all parties. I would like to thank our customers for their ongoing support as well as Mastercard and Visa for their help in making this transition as seamless as possible.”

Wirecard AG filed for insolvency in June in a Munich court following an auditor’s disclosure that $2.1 billion of supposed deposits were missing from two banks in the Philippines. The company is facing investigations by law enforcement in Munich, Singapore, the United Kingdom, and the European Union.

Nigel Verdon, CEO and co-founder of Railsbank said, “We are delighted to have come to this agreement with Wirecard Card Solutions and thank its team for working positively with us during the process. At the end of the day, customer and team needs are our priority. The Railsbank team will conscientiously work on ensuring customers, program managers, and team members have a seamless transfer to their new home”.

Wirecard Card Solutions Ltd is a wholly-owned subsidiary of Wirecard Acquiring & Issuing GmbH and part of the Wirecard AG group. The parent company will continue to hold ownership of Wirecard Card Solution’s shares.