Railsbank is closing in on its acquisition of the UK arm of disgraced Germany payments processor Wirecard. Financial terms have not been disclosed.
As part of a solvent wind down, Wirecard Card Solutions (WCS) says it has entered a term sheet agreement to sell its card technology and associated assets in the UK to Railsbank, transferring clients and "certain employees".
If all goes smoothly, WCS customers should be migrated between now and November. During the process, cardholders will be able to use their cards and access their funds as usual.
The agreement ends a tumultuous period for Wirecard's UK business, which sent shudders through the fintech industry after it was temporarily shut down by the Financial Conduct Authority.
WCS once settled card payments for approximately 70 UK clients, many of whom have since moved off the platform after becoming mired in the accounting scandal engulfing the now insolvent German parent.
Tom Jennings, MD, WCS, says: "Our hope is that our programme managers will support our proposal and we can move forward in a positive way for all parties."
The UK unit is not the only part of Wirecard to be offloaded - administrators have also agreed to sell the company's Brazilian unit to PagSeguro Digital. Talks to sell Wirecard North America are also said to be advanced.
Meanwhile, earlier this week it emerged from Germany that Wirecard AG will axe around 730 jobs, more than half its staff, as it seeks to preserve cash. The firm's management board's contracts are also being terminated as a Munich court begins insolvency proceedings against the firm.
Among those leaving are a six-strong technology team that is moving to a new digital innovation unit being set up by Berlin-based fintech finleap.