Curve and Wirecard

Dear Customers,

We would like to address the current situation with Wirecard, who is a partner to Curve.

As you may be aware from recent announcements, Curve is moving its card issuing relationship to Mastercard, which includes moving our e-Money in-house. We had planned to move our e-money customers (ie: Curve cardholders) in-house by June 28th, which was communicated to you on the 28th of April. Please rest assured, we are doubling down our efforts to complete the full transition in the coming weeks.

In terms of your cards, which say “issued by Wirecard” - these will continue to function without issue. We are taking over the management of the cards on the network and your eMoney accounts with Curve in a seamless manner without the need to re-issue cards. This is a standard industry practice and won’t be impacted by whatever the future may hold for Wirecard.

We are in constant contact with senior executives at Wirecard, with Mastercard and regulators to mitigate any possible impact to you and our business with Wirecard and we are keeping close to developments.

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Thank you! This was the type of update I was expecting from the company to cardholders and investors at the very least. I do however wish to underline I hope you will also send out an e-mail, since that will reach more people than this forum.

Awaiting with interest how soon you will be able to swap to issuing the cards in-house, since it’s still a while until the assumed date and the situation with Wirecard is indeed very volatile.

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Most Curve customers won’t even have noticed that their card was issued by Wirecard, so I don’t think this is necessary. @Curve_Marie did the right thing by updating us in this forum, where concern had been expressed by Curve’s more informed customers. There is no need at this stage to widen the audience.

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Not sure I agree - the reference to ‘complete the full transition in the coming weeks’ suggests that the June 28th switching-date (that was announced over email) is unlikely to be met. Appreciate it might be hard to provide assurances on that deadline in light of Wirecard’s current circumstance. Though would be good to understand what mechanisms are in-place for Mastercard to continue servicing the cards if Wirecard was to close immediately (a real possibility / the debt market’s view of what will happen).

Most customers probably don’t realise the difference between a corporate charge card and a personal charge card (to them or the merchant they use it with) - doesn’t mean it’s right not to explain the difference in succinct/direct language.

As banks have found - leave the customer ignorant at your peril.

Either way a smart move by Curve to start making the switch back in April.

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The first time I saw Wirecard on the card and I thought they owned the service provided on the card so to see that curve is independent of Wirecard is good and should all fall curve cards should continue I suspect don’t think anyone will want cards to stop working as it will be bad for the economy cause many cards were issued through Wirecard which are linked to many companies and many people will be effected if all cards stoped without warning and no back up in place

I think mastercard would find a way to make sure all cards etc are working and not leave millions of people without access to their money etc

It would be unprecedented for a company that is subject to numerous international criminal investigations, and has just admitted to at least 1 year of spurious accounting, to be given a bailout, regardless of importance. Though it was also unprecedented for BaFin to ban shortselling in a single stock and start a criminal investigation into two journalists leading the charge against Wirecard last year - so you never know. Though I doubt Mrs Merkel wants anything to do with it given they’ve already shot the messengers once (and are now having to defend this intervention in the courts).

I also struggle to see why Wirecard are that important to the economy. From my perspective it’s a fraction of the significance of Lehman Brothers going to the wall. A particular difference in this case is the whole business model of Wirecard is now questionable (it’s a payment company that can’t track cash… and therefore can’t track profit). Mastercard will continue. Visa will continue. Most customers will have other methods of paying bills. The few customers with money directly with Wirecard as a bank should be covered by the European DGS (I imagine, no idea).

Based on the ratings agencies / debt markets alone, I don’t see Wirecard surviving.

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Thanks for the update @curve_marie. Glad to hear Curve have this in hand :slight_smile:

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I have to admit that to me it looks like mainly @city_tom has understood the seriousness of the situation we see unfolding in relation to Wirecard. Wirecard isn’t irreplacable and thankfully we aren’t talking about lost billions from one or a few creditors, but a multitude of banks, which means the financial risks are spread across a broader spectrum of financial institutions outside Wirecard. There’s indeed no need for anyone, except the creditors, to save the assets at risk.

As for Wirecard, it’s not the first payment processing related business that has some shady and questionable workings. One has to only back to the 2000s and look at PayPal and their practices back then. It’s not really like it was without doubt PayPal would survive their bad business practices. In this case we’re talking about substantial losses and even criminal proceedings are likely, just like with Enron. I second the motion it’s hard to see Wirecard survining.

In terms of Wirecard quite possibly going down the drain as it currently is, it’s also an opportunity for a company like Curve, because there’s far fewer card issuers among the new type of paycard companies and many rely on Wirecard (like e.g. a multitude of Bitcoin related cards) and thus Wirecard ceasing to exist would beyond the immediate short term in fact narrow down the competition of Curve or at least be a hindrance for those competing without being able to issue their own cards.

Now as for this uninformed notion of it being better to not engage with your whole customer base and rather hide away the Wirecard issue in a forum for the most savvy customers, I seriously can’t see how that rationale would have any merit. It’s absolutely a disaster, would for some reason Curve cards or new applications stop working even for a day or a few, and you’ve not recognised in public the perilous situation at hand. That would be the PR disaster I was already previously talking about - failing to being proactive and open, especially when the issue isn’t even in-house. It’s not being alarmist. It’s being a realist and customer service minded.

I agree fully with it being a good move to start issuing your own cards and that’s part of the path to seeing a profitable company. The only risk really is that at the moment all cards out there are Wirecard issued, so any possible issues that may arise with the cards working or being able to issue new ones - even if it would be a very temporary inconvenience for a day or so, are critical for the Curve customer satisfaction and could result in lost business. So it’s paramount that things really work out in a way that’s smooth for Curve customers and investors. This is why the company needs to reach out to the customers and relay the message of being in control of the situation. If the situation turns sour even for a day or so, a lot of grumpy voices would be heard as people ask then “Why didn’t you tell us when you knew about this?”

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There is a potential risk that some merchants, particularly those with sophisticated loss prevention systems, might reject Curve based on the card’s BIN, given that it appears as issued by Wirecard. They might be risk-adverse and decide to reject all cards issued by Wirecard because of the risk of not being paid.

Is there not a way to protect the accounts of a company that uses a card issued by another like Wirecard as many do there must be a fail safe when companies go bust that the services provided are allowed to continue

If the service using Wirecard went bust money would be protected but if a bank holding the money went bust only £85,000 or €100,00 is safe that’s what happened with loot when they went bust but the card issuer going bust is a whole new ball game don’t think we have seen that kind of collapse before. The UK saved RBS from failing under the term it was too big to fail would bankrupt UK economy and stop money from moving in the UK so they were saved

Very sad that also with the Mastercard direct collaboration in mind, also the investor cards got issued by Wirecard :confused:

Does anyone know similar card issuers like Wirecard that offers a similar service? I know that Solarisbank (Germany) (has a banking license) is also a main issuer for other fintechs, but all their cards are in vertical design (for whatever reason)

Hi all, I found this interesting. Even if Curve weren’t planning the imminent switch to in-house, the problems with Wirecard AG in Germany wouldn’t necessarily affect the underlying infrastructure.

That’s reassuring

Some companies are ditching Wirecard to issue their own cards I have found out this week by emails I’ve been getting from some

Got this Update of todays morning in the case of Wirecard?

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