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Wirecard Collapse Drags Down Online Banking Services

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The continued fallout from the financial collapse of Wirecard has temporarily taken down payment card service Curve, with other banking services facing disruption.

Wirecard collapsed yesterday with debts of almost $4 billion, after the company admitted that around $2 billion of cash on its books didn’t actually exist.

The U.K.’s Financial Conduct Authority this morning suspended Wirecard’s U.K. subsidiary Wirecard Card Solutions (WCS) Limited. WCS does provide or has provided banking services for companies such as Curve, Revolut and Pockit and others.

Curve – which earlier this week announced its technology would be behind a revamped version of Samsung Pay – has admitted that its services will be temporarily affected by the WCS suspension.

“Following the shutdown of Wirecard Card Solutions Limited by the Financial Conduct Authority, Curve customers have today been informed that they are likely to see a temporary disruption to their service and are advised to carry an alternative payment method,” a statement from the company reads.

“In April, Curve became a principal member of Mastercard enabling it to bring more processes in house such as card issuing and e-money and move away from a reliance on Wirecard.

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“As such, this disruption will only last for only a limited period of time and we are doing everything possible to complete this transition as quickly as possible.” A spokesperson for Curve stressed that no customer funds were at risk from the disruption.

Revolut is believed to have already migrated its payment services away from Wirecard to avoid any potential disruption to services. Pockit has been trying to reassure customers that funds held by the company will not be affected by Wirecard’s collapse but has yet to make any public statement on its services.

“All cardholder funds are safeguarded and segregated in accounts held under the name of Wirecard Card Solutions LTD in the U.K.,” the company tweeted in response to customer concerns about funds held in Pockit. “As such all cardholder funds are safeguarded and segregated in accounts held by Barclays Bank PLC under the name of Wirecard Card Solutions ltd. In the U.K.”

Pockit has been approached for comment.

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I have been a technology writer and editor for more than 20 years. I was assistant editor of The Sunday Times’ technology section, editor of PC Pro magazine and have written for more than a dozen different publications and websites over the years. I’ve also appeared as a tech pundit on television and radio, including BBC Newsnight, the Chris Evans Show and ITN News at Ten. Hit me up if you’ve got a tech story that needs breaking at barry@mediabc.co.uk.

Source: https://www.forbes.com

Jun.23 — Wirecard AG’s former chief executive officer was detained by Munich prosecutors after 1.9 billion euros ($2.1 billion) went missing from the digital-payment company, in a scandal that has rattled Germany’s financial industry. Dani Burger reports on “Bloomberg Surveillance.”
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