Reportedly, Visa Inc. (NYSE: V) and Mastercard Inc. (MA) may revoke Wirecard AG’s ability to process payments on their networks, after it started insolvency proceedings citing over-indebtedness and inability to assure it can continue as a going concern. The firm also faced a recent scandal that led to the arrest of its chief executive officer leaving the German payment-processing firm unable to find more than $2 billion missing from its balance sheet. The payments company witnessed many other clients turn their backs on it after the scandal broke out a week ago pulling its share price is down 97% since then.
Wirecard assists businesses around the world to accept electronic payments from customers, so its relationship with Visa and Mastercard are critical to its business.
“We continue to closely monitor developments and assess new information as it becomes available,” Visa said in a statement. “Our priority is, and will always be, maintaining the integrity of the Visa payments system and protecting the interests of consumers, merchants, and our clients.”
“Mastercard is aware of the news regarding Wirecard AG and is monitoring the situation closely,” Mastercard said in a statement. “Our priority is ensuring people are able to continue to use their cards. We will continue to work with all parties and stand ready to take any necessary action.”
Losing the licenses from Mastercard and Visa would worsen Wirecard’s situation further. No additional statements on the matter were made by Wirecard representative.
Visa Inc. (NYSE: V) is the world’s leader in digital payments. Their mission is to connect the world through the most innovative, reliable, and secure payment network – enabling individuals, businesses, and economies to thrive. Their advanced global processing network, VisaNet, provides secure and reliable payments around the world and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device, and a driving force behind the dream of a cashless future for everyone, everywhere. As the world moves from analog to digital, Visa is applying its brand, products, people, network, and scale to reshape the future of commerce. To learn more about Visa (V) and to track its ongoing progress please visit the Vista Partners Visa (V), Coverage Page.
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