September 30, 2020 | AtoZ Markets – The Monetary Authority of Singapore (MAS) has directed embattled German payments firm Wirecard to cease their payment services in Singapore and to return all customers' funds by October 14.
MAS shuts down Wirecard's payment services to safeguard clients' interest
In a Wednesday press release, the Singapore regulator said the move was in the interest of the public while also providing the greatest certainty to customers.
Wirecard’s primary business activities in Singapore are to process payments for merchants and help companies issue pre-paid cards. MAS said it has been monitoring the impact of Wirecard's insolvent German business on its ability to continue providing payment services in Singapore.
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The authority said it has closely engaged Wirecard SG in recent months to safeguard the interest of Wirecard SG’s customers. This also includes requiring Wirecard SG to keep customers' funds in local banks and to assist them in switching to alternative service providers.
"Wirecard SG has informed MAS that it is unable to continue providing payment processing services to a significant number of merchants," MAS said.
Other forms of e-payments will continue to be available
With the cessation of Wirecard SG's services, credit card payments at merchants using Wirecard SG’s services will be affected. Those using the pre-paid cards issued by Wirecard SG will also be affected.
Other forms of e-payments such as NETS, PayNow and Singapore Quick Response Code (SGQR) will continue to be available. Customers who have not yet made alternative arrangements should do so promptly, MAS advised.
Munich-based Wirecard Wirecard filed for insolvency in June following the revelation of the missing 1.9 billion euros ($2.2 billion).
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