London-based Railsbank is in the process of completing the acquisition of crypto and fiat currency payment provider Wirex. With the acquisition, Railsbank will assume the role of issuing all Wirex Visa cards for Asia pacific customers.
Part of the plan also involves Railsbank quietly migrating Wirex existing cards to its technology in the next 45 days. However, there will be no service interruption as the migration takes place. Wirex card users will note experience any issues while using their cards. Likewise, the customer’s account and card details will remain as they were before.
Wirex already serves more than 3 million customers, most of whom use the multicurrency card to store and pay using fiat and cryptocurrencies. Wirex is at the apex of next-generation payment infrastructure as it continues to help and encourage the mainstream adoption of cryptocurrency. It became the first company to offer crypto enabled pre-paid debit cards.
With Wirex cards, people can spend up to 20 fiat and cryptocurrencies in more than 54 million locations worldwide. The cards have become increasingly popular as mainstream crypto adoption continues to gather pace. Similarly, rewards of up to 1.5% in bitcoin as part of a reward program have made the cards popular.
Strong demand has seen Wirex achieve its highest transaction volume over the last months, backed by a huge user base of over 3 million users. While the focus has been on the Asia Pacific region, there are plans to expand to other territories buoyed by the partnership with Railsbank.
Railsbank Expansion Drive
A renowned and highly respected global online banking platform, Railsbank is a perfect partner in Wirex’s bid to grow its customer base in the APAC region rapidly. The partnership also underscores Wirex’s goal of protecting existing customer’s funds while enhancing innovation in a legal and compliant manner.
Railsbank has been expanding its footprint in Asia, having already added Hong Kong Fintech Statrys as its customer. It has also attracted investment from Visa to deliver banking is a service in the Asia Pacific. A deal with Statrys is of great importance as the firm offers online business accounts and advanced payments for Asian SMEX. The two will work together to provide local currency accounts.
A deal with Railsbank could not have come at a better time for Wirex. The crypto-fiat provider is facing insolvency problems following the discovery of a $2.1 billion in its balances sheet. Last year an audit report showed that the company could not account for the money with some members having filled false and misleading statements to deceive the audit.
This is not the first time that the firm has come under scrutiny. Last year, it was in the spotlight over accounting practices irregularities. It was also the subject of allegations of fraudulent sales and profit figures inflation. There have also been claims that the company uses its escrow accounts to boost cash balances.