Fintechs Distance Themselves From Wirecard

The sudden fall of Wirecard has triggered a fallout in the wider payments system, as fintech groups move to distance themselves from partnerships they struck with the troubled German company, the Financial Times reported. Wirecard’s crisis has already affected millions of British savers while raising questions about the oversight of technology companies that claim to disrupt payment systems, which have long been the domain of banks and other financial institutions. Wirecard’s rise up the ranks of German industry was bolstered by deals with dozens of companies for services ranging from credit card processing to merchant payments. But some of those partners have begun to back away from the insolvent company after it admitted that €1.9bn of cash was missing. One notable ally had been SoftBank, which agreed to facilitate introductions to its portfolio of companies and help Wirecard’s push into Asia as part of a complex €900m investment deal. Read more