Paxum Issues Statement on Wirecard Bank Rumors

MONTREAL – Payment processing service provider Paxum has issued a statement to its clients “in relation to the recent publicity regarding Wirecard accounting irregularities,” stating that the company “is following the situation.”

“We feel it is important to publicly address the Wirecard situation to avoid unnecessary speculation and apprehension from our clients.” said Paxum CEO Octav Moise. “We would like to reassure our clients that Paxum, as a regulated financial entity, holds accounts with numerous banks and financial institutions worldwide. Should we ever feel that Wirecard or any other bank is not an appropriate processing partner, Paxum will utilize an alternative bank to process your payments, and we will provide you with that bank’s EUR funding instructions. Your incoming funding and outgoing payments will continue arriving as usual and without any interruptions.”

In its statement, Paxum added that the company has “always had strong risk mitigation policies in place, along with safeguards that ensure our clients’ funds are secure.”

“This is why we are not dependent on our banking partners’ financial viability, and why Paxum has always weathered similar situations and continued to conduct business without interruption,” the statement continued. “You can rest assured that no Paxum clients’ funds are at risk should Wirecard suffer any difficulties.”

Paxum added that it remains “confident that Wirecard’s issues will be resolved soon, and are prepared to continue our relationship with them long into the future.”

“They have always conducted their business with us in a fair and professional manner,” Paxum said of Wirecard in its statement. “In the meantime for Paxum, we will continue to operate business as usual, and we sincerely value and appreciate our many business partners, clients, and supporters.”

The Associated Press reports that Wirecard said today that it has concluded “1.9 billion euros ($2.1 billion) which were supposed to be held in two accounts probably don’t exist,” after disclosing last week that “auditors couldn’t find accounts containing the 1.9 billion euros and postponed its annual report.”

Wirecard CEO Markus Braun resigned last Friday; James Freis has been named his replacement.