UK fintech companies forced to collapse after Wirecard collapse | Zoom Fintech
By Iain Withers and Anna Irrera
LONDON / NEW YORK (Reuters) – Clients of a number of UK digital finance companies were unable to generate funds or enter their money on Friday after the fund agency collapsed German Wirecard precipitated disruption across borders.
The implosion of Wirecard on Thursday, which owes collectors nearly $ 4 billion, has led the UK Monetary Conduct Authority to impose restrictions on the company’s UK unity.
This in turn forced businesses that relied on Wirecard companies to quickly ditch their own, major consumer groups complaining on social media about the loss of entry into important businesses – and money.
“Is my money protected? When can I get it again? Won’t let me withdraw or pay a supplier. What the hell is happening ???” tweeted a buyer from ANNA business account provider.
“It’s terrible, I want my money back after I reopen my business next week,” said another ANNA buyer.
ANNA said in an announcement that it needs to quickly move away from playing cards and buyer accounts and is working to get businesses back up and running as quickly as possible.
Card provider Curve said it has witnessed a short-lived outage for businesses and has suggested customers use various cost strategies, while account provider Pockit has advised that its customers’ accounts may be inaccessible for a brief interval and that he was working with FCA to find an answer. .
The FCA has said the so-called protection guidelines protect and return the money to the buyer if an agency has failed.
“The bank card is required under digital money laws to maintain acceptable measures to protect customers’ money,” the UK monetary watchdog said.
Sarah Kocianski, chief analyst at fintech consultancy 11: FS, said the results of the Wirecard collapse were a huge check for digital companies that still depend on backend companies offered by the biggest players.
“This could bounce back not only on the companies in question, but also on the broader FinTech trade, as buyers question the new suppliers they have just adopted in droves.”
(Reporting by Iain Withers and Anna Irrera, Additional reporting by Huw Jones; improved by Philippa Fletcher)