Banking Alternatives for Wirecard Gaming Clients
The Wirecard scandal of 2020 rocked the European financial sector to its core. A well-known and reputable brand based in Germany, Wirecard was providing payment processing solutions and financial services to a number of key industries.
Notably, Wirecard was a particularly popular choice for companies operating in the gaming industry, as they could make use of its payment processing capabilities together with business and client funds accounts for a consolidated banking solution.
On the 25th of June 2020, Wirecard was forced to file for insolvency after it was revealed that almost €1.9 billion went ‘missing’ from the company records. A series of events led to the arrest of the company’s CEO, and sent shockwaves through Wirecard’s investors and customers.
Sensing potential disruption to their business, companies closed Wirecard bank accounts en masse and moved on to other providers and operators. But while it may be easier for some companies to make the leap to a competing financial services provider, gaming companies were finding it difficult to make this transition.
While there are several banking solutions available for gaming clients, it can often be challenging to find a cost-effective and reliable alternative in such a short span of time. On-boarding times can take up to several months, fees can be exorbitant since providers are aware of the limited competition, and the end product may not even be the best available on the market.
The future for Wirecard
It was recently announced that Wirecard’s core European business would be purchased by Spanish lender Banco Santander, in a €100 million deal that would see the start of the dismantling of Wirecard’s payment processing brand. In reality, even though this scandal has happened almost seven months ago, there is still a lot of uncertainty for the future of gaming companies at Wirecard.
There is no telling what the risk appetite for the new management of Wirecard Bank will be, and what impact this could have on clients in the gaming industry. Through our experience at LAG Merchant Group, it seems only natural for such companies to immediately seek reliable alternatives to ensure no disruption to the operations of their business.
Alternative solutions for Gaming companies
At LAG Merchant Group, we work with two leading EMIs that provide a full range of products and services for companies operating in the gaming industry. Bilderlings and Bankera have been working with gaming clients for some years now, and our staff at LAG Merchant Group have already supported numerous clients to make the transition from Wirecard to their new banking partner.
With a wide range of products such as business accounts, client funds accounts, merchant accounts, and debit cards, coupled with key services such as SEPA and SWIFT payment solutions, gaming companies have already established banking alternatives with the partners of LAG Merchant Group.
It is never too late to start seeking banking alternatives for your gaming company in these uncertain times – and here at LAG Merchant Group, we are ready to support you!
Contact us today to find out more!