Wirecard - Curve Relationship?

The various irregularities and issues continue to engulf Wirecard,

Latest being 1.9bn euro that the auditors cant seem to prove exist? The CEO’s response seems a little worrying to me, i think if i was the CEO I’d have a handle on where i kept my billions?

CEO Markus Braun said Wirecard was urgently seeking to clarify the balances in question.

“It is currently unclear whether fraudulent transactions to the detriment of Wirecard AG have occurred. Wirecard AG will file a complaint against unknown persons,” he said in a statement.

Would a possible Wirecard insolvency affect Curve operations??

Curve now work directly with Mastercard and no longer rely on Wirecard to issue their cards. There’s a thread explaining somewhere, I’ll find it…

Edit: found it :slight_smile: Extending our partnership with Mastercard

I’d be surprised if Curve were directly affected by this anyway to be honest. I’m sure they’re sensible enough to cover themselves legally for something that turns out to be Wirecard’s fault.

Thanks for the link, i thought that too but on the bottom of the curve.com page it still has the T&C’s saying issued by Wirecard…

Curve OS Ltd., registered in England and Wales, Company number: #09523903. The Curve Card and E-money is issued by Wirecard Card Solutions Limited (company No. 07875693) authorised in the UK by the Financial Conduct Authority to issue electronic money (Firm Reference Number: 900051). Mastercard® is a registered trademark of Mastercard International Incorporated.

Curve card is issued by Wirecard Card Solutions Ltd (WDCS) pursuant to license by Mastercard International Inc.

I was more thinking if the card issuer went bust how would that actually affect daily operations, i.e. can it just be bypassed if wirecard ceased trading completely.

It may be that they are still transitioning.

Essentially have the right to issue their own cards now, so if Wirecard were to go bust then theoretically, yes they could just speed up their plans and issue their own cards.

There may be a slight delay if they haven’t completely finished the transition. Perhaps they might have to reissue currently issued cards, but I doubt that it would be a gigantic problem.

It’s not likely that Wirecard would just straight up stop working overnight, at least in my opinion! Do not take anything I say as investment, professional or legal advice! I’m simply relaying what I understand to be the situation.

1 Like

I think they will change wirecard in 28 of june if i remember correctly

1 Like

The problem with Wirecard only affects Wirecard and not its business partners, all Wirecard systems run separately.

Wirecard never keeps customers’ money with them. External banks or the respective business partner holds the money.

Wirecard is a controversial financial institution, but it does a great job. Many financial service providers would not exist without Wirecard.

1 Like

Not sure any of the above is true. If Curve is not fully FCA registered how can it hold/instruct client money? In the past when people have had concerns about Curve’s long term survival (not a concern for me) users have been quick to point out wirecard was the FCA registered partner and controlled the funds.

As for the doing great job, Wirecard are being accused of Fraud and the German Press is calling it the greatest financial scandal in post-war times. The FT / Dan McCrum (who have been treated terribly by BaFin and Wirecard) continue to maintain they suspect Trusted Accounts are included in Wirecard’s balance sheet…

Curve did a good job for following the example of Revolut and other firms in cutting ties once of adequate scale, plenty of larger or better-backed Fintech’s have not had that sense.

Would be good to get an official statement on whether they are still on track for 28 June.

Curve don’t hold any customer money, so I struggle to understand why the need to be FCA registered any more than they currently are?

They do hold an eMoney Issuing licence, which is (or at least will soon be) used to issue funds to bridge the gap between approcing a transaction to a retailer and receiving funds from the customer bank.

Note: Original comment this was in response to has been edited

“The Curve Card (Curve Prepaid Mastercard® or Curve Debit Mastercard®) and E-money is issued by Wirecard Card Solutions Limited (company No. 07875693) with its registered office at Third Floor Grainger Chambers, 3-5 Hood Street, Newcastle Upon Tyne, NE1 6JQ. Wirecard Card Solutions Limited is authorised in the UK by the Financial Conduct Authority to issue electronic money (Firm Reference Number: 900051) (“the Issuer”).”

That suggests it isn’t Curve who hold the emoney licence, but Wirecard.

Which is to say I don’t know for sure, though I don’t think you do either. Same goes for FlareCo and other Curve investors who don’t actually speak for the company. Sadly Curve do nothing to correct or confirm your assertions on a public forum.

Given it’s hard to see how wirecard stay liquid if their loans are called in tomorrow, would be great to understand what happens next for Curve.

1 Like

https://register.fca.org.uk/ShPo_FirmDetailsPage?id=0010X00004JBiLUQA1

Feel free to check for yourself. They have announced already that they are moving away from using Wirecard…

i dont know how Curve fully works but i think they pre-fund the card. If so then they using the same scheme that Crypto uses.

Debit cards issued by Wirecard for the customers are “fully prefunded,” meaning clients’ fiat funds are held by an electronic money institution (EMI) regulated by the U.K. Financial Conduct Authority (FCA) in segregated client accounts.

“The funds are held at another bank (not Wirecard) as required by the FCA.”

I’d imagine what ever happens the team at curve will be looking to sever their relationship with Wirecard as soon as is possible, given the CEO has now resigned the story certainly does not pass the ‘smell’ test and how you could continue to have confidence in an institution that certainly appears to have engaged in some sort of fraud.

1 Like

I mean, they already have. It’s just that a transition like that cannot be done in a day, but I assume that it won’t take much longer until Curve will start issuing its own cards.

1 Like

The problem is that a great portion of all Curve cards currently in use are Wirecard issued. There’s a substantial risk of Wirecard going into bankruptcy during the weekend or at the start of next week as their line of credit is greatly endangered. Yes, they have operations working, but their credit supply is in imminent danger. We are also at risk of Mastercard stepping in.

Now for Curve this is thankfully a smaller issue than e.g. one year ago, but it means a very large card replacement project would possibly have to be done ASAP and cards could stop working very soon, depending on how any Wirecard default would be executed in practical terms.

So I would be very cautious regarding any old Wirecard issued Curve cards for the near future, until one has a card that isn’t their.

1 Like

I received my Curve Metal card today - it says Wirecard on the back…

Does Curve ever get involved in this forum? Explanation would be great.

2 Likes

Taken the current state of affairs, based on early morning news, I wouldn’t expect any positive outcome on Monday or Tuesday. I would advice strongly to keep another card with you at the time being, taken that any Wirecard insolvency can’t be prolonged under German law. Now it’s unclear how quick and to which extense Wirecard issued cards would stop working, if it all comes down now. However it’s obvious that the risk is currently very substantial and it’s not related to are the cards debit or credit cards. If the card intermediator (the issuer is kind of the intermediator between you, Curve and Mastercard) goes out of business, so does their paycards.

Now Curve should’ve gone out with an e-mail to all customers proactively already ages ago, as this situation escalated, but they haven’t. Well, that’s probably what one could expect from them. The usual silence after the hype of 2019.

I think if Wirecard goes bust the administrators / MasterCard would do absolutely everything possible to keep card processing up and running to avoid negative impact to millions of card users and if it is going to affect us, I am sure Curve will let us know…

2 Likes

I don’t think Wirecard will go bankrupt or stopping their services soon.
They are one of the biggest Financial Institution.
They have more than thousands of merchants behind them and switching from a good working system to a new unknown system is most likely the death for some merchants.

To be fair to them, it may be that the situation is not clear, or that they are working to avoid any issues, i’d rather they did that than send us an email that may or may not say anything concrete. I’ve a number of other cards in my wallet issued from Wirecard also, and i’ve heard nothing from any of those companies either tbh.

1 Like

Personally i cant see wirecard surving this in it’s current form, they were one of the largest companies of their type, until last week.

Companies rarely get away with ‘cooking the books’ and the ones that do are the ones that come out screaming about it themselves, not the ones that take legal action against newspapers etc and make out that nothing is wrong, then have to admit that billions of euro’s of cash holdings are complete figments, and if some of the earlier stories are true it is likely that billions of euros of sales numbers are also completely false.

The parts of the company worth saving will most likely be sold, or spun off into a new entity i’d have thought!