Railsbank, the leading global open banking platform, has signed an agreement with Wirecard Card Solutions Limited (WDCS) to acquire its card technology, client relationships and certain employees.
The deal follows the signing of a term sheet last month and is expected to complete by the end of 2020.
Nigel Verdon, co-founder and CEO of Railsbank, said:
“This is a huge step forward for everyone. The Wirecard team has been very supportive and the Railsbank team has been working closely with all key parties, including both card schemes and a transparent dialogue with programme managers. Our goal is to provide a safe haven and to deliver an uninterrupted service for the programme managers and the cardholders. We have already successfully migrated a number of clients and have everything in place for a phased and controlled migration at scale. This is welcome news for our industry.
“In times of change, communication is key. Our team will continue to have a transparent dialogue with all programme managers and card schemes to ensure a phased and controlled migration for programme managers and their cardholders.”
Tom Jennings, Managing Director of WDCS, said:
“Our main priority has always been to ensure that our customers, programme managers, and team members can have a seamless transition to a new provider. We are confident that entering into the agreement with Railsbank today is a significant step towards that. We continue to pursue our plan for a solvent wind-down of the business.”
Earlier this month Railsbank held a positive meeting with WDCS’s programme managers as part of its plans to migrate programme managers and their cardholders in a phased and controlled manner.
Railsbank is a principal member of Visa and Mastercard, UK Faster Payments, BACS and a full Supervised Financial Institution (SUPE) member of SWIFT. It is headquartered in London and has offices in Singapore, Lithuania, the Philippines, Vietnam, Sri Lanka and the US.