Some of you may be following the news in the FinTech world concerning Wirecard AG in Germany and Wirecard Solutions Limited (Wirecard UK)
Here is news from Dozens and Project Imagine published Friday:
This was our original post:
Since we published these posts, there have been many developments as we do our very best to look after the interests of our customers. Dozens’ Founder and CEO, @AC has been answering questions here directly to keep you up to date. Please continue to follow this topic for the latest news.
@Gaoler Do you think this is a temporary measure? I can understand the need to impose restrictions on the disposal of customer funds and to ban any new business, but this action will block people’s cards and cause them very real difficulty or hardship. I would have thought it OK to allow the processing of card transactions to continue even with extra safeguards in place.
I tried to make a payment with my Dozens card a few moments ago - “Your card has been declined”
Just wanted to let you know that we are monitoring the situation very carefully and will let you, and all customers, know more news very shortly .
In the interim, this is what we have just published on twitter:
In light of recent financial irregularities at Wirecard AG, the FCA has just imposed restrictions on Wirecard UK’s authorisations.
As the first set of Dozens cards were issued by Wirecard UK, we are seeing an impact on our card services. As a result, to keep your money safe, we have paused all card transactions and payments while we investigate this further and make requisite changes to our systems.
We will let you know as soon as we have more information. Meanwhile, please be reassured that all your balances are absolutely safe.
To be fair to @robert and the team behind @dozens this situation is moving very fast now. I’m pretty confident the team will be brain storming how they can accelerate the migration from Mastercard. It’s fortunate the new relationship with VISA was already in place before Markus Braun killed a major provider in the pre-paid card marketplace.
How Dozens handle this will be a very important factor in it’s future growth, so far some big names have made statements about what is happening with there cards and acceptance including the likes of Curve and crypto .com
This will make people wary of fintech’s if handled badly.
I think the FCA must have more info they’re not disclosing that’s made them very worried, to take such drastic action. Just speculation though. Either way, I think it marks the beginning of the end for Wirecard UK, as everyone is scrambling to find alternatives.
I think that’s the interesting bit - can dozens move all its customers over reasonably quickly, say, within a week or two?
An update on the Wirecard UK issue. The original FCA notice (read here: Wirecard can resume regulated activity | FCA) relates to Wirecard UK and agents of Wirecard UK. The good news is that Dozens is not an agent of Wirecard UK in that we have our own Emoney and Investment licences from the FCA.
Therefore this issue ideally shouldn’t have affected us or our customers.
However, given the nature of the rapidly unfolding events, a number of players in financial services are choosing to play safe with a more blanket approach in cutting off access to any cards issued by Wirecard UK. This is what causes our card services to be affected.
Unlike some of our competitors who are also affected by the Wirecard UK crisis, we do also have our primary membership with Visa that lets us connect to their network directly, without an intermediary like Wirecard UK.
We had planned to transfer over to our own Visa cards in Q4 2020, but will now look to expedite this together with Visa and our other partners. We will keep you posted on new timelines as we work through implementation plans.