The case of the Wirecard missing billions deepens as both Visa and Mastercard mull cutting ties with the payments processor and the Philippines decides to probe into the matter.
The world’s largest payments networks are reassessing their agreements with Wirecard, with Visa and Mastercard already contacting major Wirecard customers to warn them about a possible break up with the struggling company.
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This would mean that the card giants will bar the German fintech firm from processing payments on their networks.
Wirecard helps businesses accept electronic payments from customers, so being able to process payments through Visa’s and Mastercard’s networks is vital to its business.
Both Visa and Mastercard say they’re monitoring the situation closely.
Wirecard Bank spared from insolvency proceedings
“Our priority is ensuring people are able to continue to use their cards,” said Mastercard in a statement. “We will continue to work with all parties and stand ready to take any necessary action.”
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By GlobalDataAlthough Wirecard filed for insolvency, Wirecard Bank — where the Mastercard and Visa licenses are held — isn’t part of the proceedings.
Wirecard said “release processes for all payments of the bank will be located exclusively within the bank and no longer at group level.”
The Philippine investigation
Philippine Justice Secretary Menardo Guevarra has instructed state investigators to coordinate with the Philippine central bank’s anti-money laundering council to conduct an inquiry into Wirecard’s missing $2.1 billion.
The Secretary of Justice is the head of the Department of Justice and a member of the President’s Cabinet.
Wirecard’s former chief operating officer Jan Marsalek is said to be in the country. He was fired after Wirecard said that the cash, purportedly held at two Philippine banks which have denied any links with the firm, probably did not exist.
Munich prosecutors may seek Marsalek’s arrest, German business daily newspaper Handelsblatt has reported.
Germany has no extradition treaty with the Philippines.
Meanwhile, former chief executive Markus Braun, who had been arrested in Munich on suspicion of misrepresenting Wirecard’s accounts and of market manipulation, has now been released after posting bail of €5m.
Although a warrant against Braun, who is also Austrian, has been lifted, he remains under investigation as the Wirecard saga continues.
