Monday, August 31st, 2020
The consequences of Wirecard AG’s misconduct are currently affecting the financial market in the USA. Several unethical and discreditable accounting behavior has left the firm’s North American subsidiary insolvent. The firm is now looking for serious potential buyers.
Wirecard North America, whose offices sit in Pennsylvania, stated that it had contracted an unspecified bank to oversee the sale. On the other hand, rival payment processing firms are using this opportunity to woo Wirecard consumers who are disheartened by the firm’s current tribulations.
In a statement, Wirecard North America emphasized its financial vigor and stated that it remains a distinct legal entity independent from Wirecard AG, the parent firm. The company also added that it has operated independently and conducted many operations minus support from the parent firm.
The German-based Wirecard AG was declared insolvent following investigations that showed the firm could not account for the whereabouts of roughly 2.1 billion USD. The findings led to the firing and subsequent arrest of the firm’s chief executive.
Several probes alongside whistleblower and financial reports indicated it’s highly probable that Wirecard AG never had the missing amount. Instead, it conducted gross financial misconduct to inflate its value.
The US Wirecard branch was acquired in 2016 at an unspecified fee and previously went by the name; Citi Prepaid Card services, that was under the Citigroup financial firm. Initially, the card service firm handled the processing and management of prepaid cards for various corporate clients.
Wirecard North America still handles corporate clients and offers digital wallets and cards that help facilitate digital payment and processing of transactions.
In view of the recent dubious developments, various payment processing firms are looking to exploit every opportunity to tap into Wirecard’s market share. In June this year, the i2c company came up with a package offering dubbed the easy migration service.
The service seeks to help disgruntled Wirecard customers to cross over to i2c Inc., which has operated out of California for the past 19 years. According to i2c, their migration service helps consumers easily set up card information to access debit, credit, or prepaid services quickly and efficiently.
i2C VP for sales, Kevin Fox, recently stated in an interview that the service focuses on handling the transfer of client accounts. He also mentioned that the service is accessible worldwide and now serves up to 200 nations.