This Crypto Mode article identifies four companies, Curve, Pockit,Crypto.com, and ANNA Money, that have been crippled by the Wirecard fiasco; but there are many more than just these four. Fintechs offering card services to its customers through Wirecard will be facing very hard times. Here’s additional coverage from the article:
“Trouble is never far away in the financial word. Developments affecting Wirecard are troublesome, but it also creates a serious issue for those relying on these services. All of the following companies have been forced to undertake action as a result.
Curve (Fintech)
Although Curve has only recently announced a major milestone. Its technology will be part of the next version of Samsung Pay. Focusing on mobile payment solutions is crucial in the modern day and age.
Unfortunately for the fintech startup, its services are now disrupted due to Wirecard. It is expected that this will only be temporary. Curve customers are advised to carry an alternative payment method until the matter is fully resolved.
One saving grace for Curve is how it is a principal member of Mastercard. Most of its processes are done in-house, including card issuing and e-money transactions. Not all companies have been that lucky, unfortunately.
Pockit (UK Banking)
Fintech startups can be found in every nook and cranny of the UK’s banking system. Pockit is one of the companies affected by Wirecard’s scandal. Customers cannot use their bank cards, make payments, or withdraw cash for the foreseeable future.
Collaborating with the FCA should help to remedy this situation as quickly as possible. How long the process will take, remains to be determined. All customer funds are safe at this time, which should offer some relief to affected users.
Crypto.com (Cryptocurrency Debit Card)
A lot of third-party card providers will face problems following this Wirecard disaster. In the cryptocurrency space, Crypto.com is one of the casualties. The company offers a payment card across various continents. For now, the company is reimbursing all users in Europe and the UK, a process that is virtually complete.
The big challenge now is to find a way to issue these debit cards. Relying on a service provider doesn’t seem a good idea, but there are few options available to cryptocurrency firms these days. For now, all card operations in the EU and UK have been suspended until further notice.
ANNA Money (UK Finance)Just today, the ANNA Money team provided an update regarding the whole Wirecard debacle. As the FCA is officially investigating the manner, ANNA customers will not be able to perform any financial actions. Money is perfectly safe, but it cannot be accessed through payment cards, transfers, or withdrawals.”
Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group
