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LAHORE/KARACHI: Thousands of Payoneer users in Pakistan are expected to lose access to money in their prepaid cards with the company owing to the fallout from a devastating scandal that hit German fintech firm Wirecard AG.
Payoneer is a global payments company that enables millions of businesses and professionals from more than 200 countries to make seamless cross-border payments. One of its products is Payoneer Prepaid Mastercard, which is issued by Wirecard AG’s UK-based subsidiary Wirecard Card Solutions Limited (WCSL).
On Thursday, Wirecard AG filed for insolvency after it was revealed that the company was involved in the accounting fraud and reported that 1.9 billion euros from the company account were missing. Subsequently, the UK regulator of WCSL, the Financial Conduct Authority (FCA), ordered WCSL to freeze all prepaid card activity for the time being.
The FCA has communicated that they have taken these measures with the primary objective of protecting the interests and money of consumers who use Wirecard services. Pending further actions from the FCA, all payments services, including Payoneer, that subscribe to Wirecard, their cards will be blocked temporarily and the users will not be able to withdraw the funds on these cards, nor receive new payments.
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