Wirecard UK confirms asset sale to rival Railsbank

By Oliver Smith on Tuesday 1 September 2020

Digital Banking

Between now and November all remaining Wirecard Card Services customers will be moved over to Railsbank.

Wirecard UK confirms asset sale to rival Railsbank
Image source: Wirecard.

London-based banking platform provider Railsbank has agreed to purchase the technology and assets of Wirecard Card Solution, the UK arm of Germany’s Wirecard, for an undisclosed amount.

The deal, first reported in mid-August, was confirmed on Friday evening and will include “the transfer of client relationships” from Wirecard to Railsbank.

Just last week Railsbank confirmed it had won the Asia-Pacific business of former Wirecard customer Wirex, indicating that the London firm was looking to aggressively scoop up the fallen company’s customers.

“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,” said Railsbank CEO and co-founder Nigel Verdon on Friday announcing the Wirecard asset purchase.

“At the end of the day, customer and team needs are our priority. The Railsbank team will conscientiously work on ensuring customers, programme managers and team members have a seamless transfer to their new home”.

Wirecard said that “certain employees” would transfer over to Railsbank as part of the sale, and that customers of Wirecard would have their business moved across “between now and November 2020”.

The remaining assets of Wirecard Card Services and employees not being transferred will go through an “orderly and solvent wind-down”, presumably seeing some job losses as a result.

“Our hope is that our programme managers will support our proposal and we can move forward in a positive way for all parties,” said Wirecard Card Solutions managing director Tom Jennings.

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