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Paxum Responds to Wirecard Insolvency Filing

Paxum Responds to Wirecard Insolvency Filing

Paxum Responds to Wirecard Insolvency Filing

Monday, June 29, 2020

Paxum has announced “minor changes” to its services in response to Thursday's news that Wirecard AG has filed for insolvency in a Munich court.

“As a regulated financial entity,” a rep explained, “Paxum holds accounts with numerous banks and financial institutions worldwide. This diversity enables Paxum to switch EUR funding instructions to an alternative bank to process clients incoming and outgoing EUR payments. Paxum EUR funding instruction is being actively updated at the time of writing, and any client that needs assistance should contact Paxum directly for more information.”

The company stressed that U.S.-dollar funding “is not affected and remains fully available for Paxum clients.”

Paxum CEO Octav Moise said that “part of our strategy is to always have backups in place so we can weather any potential financial storm. If any business client is having a hard time with the new euro wire information, please reach out to me directly via email for assistance.”

The company added that their Paxum SEPA Mastercard issued by Wirecard Card Solutions in the U.K. is "currently operating normally without any interruptions,” since “Wirecard Card Solutions Limited is a separate entity from Wirecard Bank AG and settlements do not go through Wirecard Germany but through a bank in the United Kingdom.”

“In the unlikely event that Mastercard revokes Wirecard Card Solutions license, or if Wirecard Card Solutions goes out of business,” the rep continued, “all clients will have reasonable time to empty their card balance, plus a Paxum Unionpay card would be issued free of charge, with activation fees waived in order not to cause any inconvenience to Paxum account holders.”

Paxum added that they “continue to operate business as usual, and we sincerely value and appreciate the support we've received from our many global business partners and clients.”