Railsbank confirmed it has signed an agreement with Wirecard Card Solutions Limited, the UK arm of the scandal-hit bank, to acquire its card technology, client relationships and certain employees.
The agreement follows the signing of a term sheet last month and is expected to complete by the end of the year.
Railsbank said it has already held a “positive meeting” with Wirecard UK’s programme managers as part of its plans to migrate programme managers and their cardholders in a phased and controlled manner.
Nigel Verdon, co-founder and CEO of Railsbank, said: “This is a huge step forward for everyone.
“The Wirecard team has been very supportive and the Railsbank team has been working closely with all key parties, including both card schemes and a transparent dialogue with programme managers.”
He added: “Our goal is to provide a safe haven and to deliver an uninterrupted service for the programme managers and the cardholders. We have already successfully migrated a number of clients and have everything in place for a phased and controlled migration at scale. This is welcome news for our industry.
“In times of change, communication is key. Our team will continue to have a transparent dialogue with all programme managers and card schemes to ensure a phased and controlled migration for programme managers and their cardholders.”
Tom Jennings, managing director of WDCS, added: “Our main priority has always been to ensure that our customers, programme managers, and team members can have a seamless transition to a new provider.
“We are confident that entering into the agreement with Railsbank today is a significant step towards that. We continue to pursue our plan for a solvent wind-down of the business.”