LONDON (UK) – Britain’s Financial Conduct Authority said late on Monday it would lift curbs on German payments company Wirecard AG, allowing it to resume operations.
The markets watchdog imposed restrictions on the company’s UK wing after its collapse last week.
“We have been working closely with Wirecard UK and other authorities over the last few days to ensure that the firm was able to meet certain conditions required to lift the restrictions we imposed on it,” the regulator said.
Several British fintech firms had to suspend services following the FCA’s curbs on Wirecard, leaving hundreds of thousands of accounts blocked.
“Customers will now, or very shortly, be able to use their cards as usual,” the FCA said.
Wirecard said on Saturday it would go ahead with business activities after filing for insolvency and an administrator was appointed on Monday.
Firms financing poorer and vulnerable Britons who have difficulty accessing mainstream banking were among those hit. They include Pockit and U Account, part of subprime lender Morses Club.
The government said anyone worried about not being able to receive welfare payments should contact its helplines.
Wirecard’s woes have forced some companies to accelerate existing projects to switch to other services, including card provider Curve which said on Monday its services were back online.
But industry forum Emerging Payments Association (EPA) warned it could take months for others to do the same and urged the FCA to lift its Wirecard freeze as soon as possible.
“We predict dozens of corporate failures, hundreds of job losses and significant reductions in tax payments, unless it is removed right away,” EPA said in a letter to the FCA.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field