Your Wirecard E-Cash Was Safe Until It Wasn’t
The aftershocks of the German fintech firm's collapse reach the U.K., with chilling results.
At the heart of a burgeoning fintech industry.
Photographer: Lennart Preiss/Getty Images
The collapse of fintech darling Wirecard AG into insolvency proceedings is a total embarrassment for Germany, whose regulatory apparatus and corporate-governance system failed to properly scrutinize the company’s accounting practices even as red flags kept being waved.
But it’s also a serious problem for the U.K., where a burgeoning fintech industry grew up around Wirecard. The German company’s British subsidiary, Wirecard Card Solutions, has an “e-money” license, which allows it to handle digital cash without fully becoming a deposit-taking bank. As a member of Mastercard and Visa's payment networks, the unit is able to issue cards under those brands.