Wirecard Fallout to stimulate FinTech in the region

Wirecard has built a business with many qualified people and good assets, said the founders of Railsbank and Finch Capital, who acquired the legal entities of the payment processor in the UK and parts of South Asia respectively. -Is.

“Wirecard has been a huge blow to fintech, and we all play a role in protecting our industry and making sure fintech is always valued as an industry, because it is the future of finance.” , co-founder of Railsbank and Nigel Verdon Told finews.asia.

Last year, Railsbank bought the UK assets of Wirecard, while Dutch fintech fund Finch Capital, via Nomu Pay, announced in April that it was in the process of acquiring Wirecard entities in the Philippines, Malaysia, to Hong Kong and Thailand, as well as the company’s regional data warehouse in Singapore.

“It made sense to us strategically, and there are a lot of people at Wirecard that we can use to grow our business. And we were also motivated to help the market, because there are so many people who depend on these companies, ”said Verdon, based in Singapore, where Railsbank opened its regional headquarters in 2019.

Unique opportunity

“Obtaining licenses and building a presence are things that take time, and it was a unique opportunity to enter attractive markets. If we want to do something important in this space, it should go through an agreement like this ”, partner of Finch Capital Radboud Vlaar (photo below) said in an interview on acquisitions.

Radboud Vlaar, Partner, Finch Capital

Unlike Wirecard, Nomu Pay will focus more on e-commerce than point-of-sale, Vlaar said. “There are many nuances in the region, and when you look at the shift from using cash to digital payments, and the growth of e-commerce, I see strong growth potential for the business in the 5-10. coming years. “

Attractive markets

“We are looking to add one or two more active ingredients and develop it organically. We see opportunities in the region, especially in differentiating ourselves by bringing in newer technology, compared to local players, ”said Vlaar.

At the country level, Vlaar said Nomu Pay is interested in countries that Wirecard has found attractive, such as Vietnam and Indonesia, and seeks to grow organically in these two markets. It is also establishing itself in Singapore and is considering Australia, Japan and Korea in the longer term.

“We like large, high growth markets where there is great potential for a payments player like Nomu Pay to help local and regional customers be successful in payments, unlike other payment giants, which focus on l ‘helping American / European companies to expand in Asia, “he added.

Railsbank growth

Verdon said the acquisition of Wirecard, which brought useful technology and experienced staff, has helped the company grow its banking as a service and card as a service business, both in Europe and across Europe. Singapore.

“It boosted our business and gave us the technology and a lot of people we needed to hire, especially talent in card issuing, many of whom worked for Wirecard,” Verdon said.

Railsbank was recently launched in Australia, where it has partnered with Volt and Mastercard. He is also eager to expand into the Philippines and Indonesia, Verdon said.

About Emilie Brandow

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