Wirecard UK & Ireland, an Irish-based subsidiary of the scandal-hit German fintech group Wirecard, has sold some of its corporate card assets to Paynetics UK.
The UK company, which is part of the Bulgarian-headquartered Paynetics Group, announced the deal earlier this month.
Paynetics said the agreement would see it work with Wirecard UK & Ireland’s corporate customers, who have previously relied on Wirecard for card issuing and payment services, to adopt it for the continuation of their existing card programmes.
Wirecard acquired the corporate prepaid card portfolio from US bank Citi over three years ago. Financial details for the transaction with Paynetics were not disclosed.
As part of the deal, Paynetics will operate a range of programmes including employee benefits, sales incentives, corporate expenses and social welfare for these organisations. The company has begun engaging with its new customers to manage the transition.
Paynetics said it will provide its new customers with a “seamless transition, together with a strategic product roadmap for the future development of these programmes which until now faced the prospect of termination”.
Laura McCracken, EVP of Wirecard Global Sales and chairwoman of Wirecard UK & Ireland, said the deal came at a crucial moment for the company.
“When faced with the difficult decision of sun-setting Wirecard’s corporate payout card business, Paynetics showed up as the white knight,” she said.
“Their speed and agility enabled us to preserve numerous programs for our corporate clients and ensure minimal disruption to thousands of end-users.”
Mike Peplow, the recently-appointed chief executive of Paynetics UK, said the company had been looking for ways to expand and grow the business and felt the deal to acquire the Wirecard subsidiary would help it achieve this goal.
Sunday Indo Business