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Fintechs suspend uk services after Wirecard bankruptcy

by ace
Fintechs suspend uk services after Wirecard bankruptcy

On Thursday (25), the German payments company Wirecard suffered restrictions from the United Kingdom due to a debt of almost 4 billion dollars that caused its bankruptcy. As a com, fintechs that depended on the company’s services had to temporarily suspend their services.

This caused customers of numerous digital financial companies to be unable to access their accounts on Friday (26). The UK Financial Conduct Authority (FCA), the body responsible for restrictions on the Wirecard unit in the country, has ensured that customers’ money is not at risk due to the German’s bankruptcy.

“Wirecard is under the requirement of the Electronic Money Regulations to maintain appropriate measures to protect customers’ money,” the FCA said.

Markus Braun, president of Wirecard, who was arrested for accounting fraud and was released on bail of R $ 29 million. Source: Michael Dalder/Reuters

Challenge for digital businesses

The Curve card issuer was one of the numerous names affected by the German’s collapse. Upon detecting the temporary interruption of services, the company recommended that its customers use alternative payments.

The company Pockit, in turn, said that the accounts would be inaccessible for a short period and that it is working with the FCA to find a solution.

On the situation, the head of research at fintech 11:FS consulting firm, Sarah Kocianski, said the effects of Wirecard’s bankruptcy will be a major test for digital companies, which often rely on back-end services provided by larger companies.

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