Consumers and small businesses in the UK have been hit by the Wirecard scandal as the UK’s Financial Conduct Authority ordered Wirecard’s UK unit to stop activities; the action impacted several British online banking apps, including Curve, Anna, Pockit and U Account; these companies relied on Wirecard to process payments and now the fintechs are left scrambling to find new partners; the fintechs who rely on partners like Wirecard operate under an e-money license which does not allow them to hold customers’ funds; “Providers that have had to suspend or end operations, through no fault of their own, will be trying to find an alternative provider (and there are many) as quickly as possible,” Sarah Kocianski, Head of Analysis and Research Manager at fintech consultancy 11:FS, told CNBC. “But even if they get up and running again quickly, the damage to customer trust is likely to be irreparable.” CNBC.
