The acquisition will allow Railsbank to accelerate its expansion across the UK and Europe
Wirecard Card Solutions has announced the sale of of its card technology and related assets in the UK to Railsbank, as part of its plans to reach a solvent wind-down of the business.
The company has signed a term sheet agreement with a global Banking-as-a-Service platform Railsbank to transfer its UK-based card technology, client relationships and certain employees, which is supported by the FCA.
Wirecard Card Solutions is a wholly owned subsidiary of Germany-based Wirecard AG group, and is engaged in providing customised card products and services including debit, prepaid and credit cards for both corporate and consumers.
Wirecard Card Solutions managing director Tom Jennings 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 programme 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.”
The acquisition to enable Railsbank to accelerate its expansion across the UK and Europe
In June, Wirecard has filed for insolvency, following the audits conducted by Ernst & Young (EY) revealed that approximately $2.1bn cash is missing from the company’s accounts.
The company has announced its intention to wind-down its FCA-regulated business, while making alternative arrangements with card providers, to ensure that existing customers and products are transferred to another appropriate provider.
Railsbank said that the acquisition of Wirecard Card Solutions would accelerate its expansion across the UK and Europe with few new customers, and is also expected to strengthen its position as a major BaaS platform in Europe.
Railsbank CEO and co-founder Nigel Verdon 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, programme managers and team members have a seamless transfer to their new home.”