SINGAPORE – The Monetary Authority of Singapore (MAS) said on Tuesday (June 30) that German payment firm Wirecard’s local entities had informed it that they are assessing their ability to continue providing services here after their parent firm filed for insolvency last week.
“Credit card payments at merchants using Wirecard’s services, as well as usage of pre-paid cards issued by Wirecard, will be affected if it ceases operations here,” MAS said in a statement.
Wirecard’s primary business activities in Singapore are to process payments for merchants and help companies issue pre-paid cards.
MAS said it has informed Wirecard of its expectations that they promptly notify customers in advance of any disruption to their services.
“There are alternative payment service providers available to merchants. Other forms of e-payments such as NETS, PayNow and SGQR continue to be available, said MAS..
Singapore’s central bank added in the statement that Wirecard’s entities in Singapore had complied with directions to hold customer funds in segregated accounts with banks in Singapore.
Last week, Wirecard filed for insolvency owing creditors almost 3 billion euros after disclosing a 2.1 billion euro hole in its accounts that its auditor EY said was the result of a sophisticated global fraud.
Wirecard said on Saturday it would proceed with business activities after the insolvency filing and an administrator was appointed on Monday.
Separately, Wirecard North America Inc, a unit of German payments company Wirecard, on Monday put itself up for sale, Reuters reported. The US-based unit, formerly known as Citi Prepaid Card Services, was bought by Wirecard in 2016.