Wirecard built a company with many skilled people and good assets, said the founders of Railsbank and Finch Capital, which have acquired the payments processor's legal entities in the U.K. and parts of Southeast Asia, respectively.
«Wirecard was a body blow for fintech, and we're all playing a role in protecting our industry and to make sure fintech is still appreciated as an industry, as it's the future of finance,» Railsbank co-founder and Nigel Verdon told finews.asia.
Last year, Railsbank purchased the U.K. assets of Wirecard, while Netherlands-based fintech fund Finch Capital, via Nomu Pay, announced in April that it was in the process of acquiring Wirecard entities in the Philippines, Malaysia, Hong Kong and Thailand, as well as the company’s regional data warehouse in Singapore.
«It made sense for us strategically, and there's a lot of people at Wirecard that we can use to grow our business. And were were also motivated to help the market too, as there is an awful lot of people who are dependent on these companies,» said Verdon, who is based in Singapore, where Railsbank opened its regional head office in 2019.
Unique Opportunity
«Getting licenses and building a presence are things that take a long time, and this was a unique opportunity to get into attractive markets. If we want to do something significant in this space, it would need to be through a deal like this,» Finch Capital partner Radboud Vlaar (pictured below) said in an interview about the acquisitions.
Radboud Vlaar, partner, Finch Capital
Unlike Wirecard, Nomu Pay will have a stronger focus on e-commerce, rather than POS, Vlaar said. «There are many nuances across the region, and when you look at the shift from the use of cash to digital payments, and the growth of e-commerce, I see strong growth potential for the company in the next 5-10 years.»
Attractive Markets
«We're looking to add one or two more assets to it, and organically build it out. We see opportunities in the region, particularly in differentiating ourselves by bringing newer technology, as compared to local players,» Vlaar said.
Country-wise, Vlaar said Nomu Pay is interested in countries that Wirecard found attractive, such as Vietnam and Indonesia, and is looking to expand organically into these two markets. It is also establishing operations in Singapore, and is looking at Australia, Japan and Korea in the longer term.
«We like large, high-growth markets where there is a lot of potential for a payment player like Nomu Pay to help local and regional clients succeed in payments, unlike other payment giants, which focus on helping U.S./European firms expand into Asia,» he added.
Railsbank Growth
Verdon said the Wirecard acquisition, which brought useful technology and experienced staff into the fold, has helped the company grow both its banking-as-a-service and cards-as-a-service businesses, both in Europe and Singapore.
«It's boosted our business and has brought us the tech and a lot of people that we needed to hire – specifically card issuing talents, many of which worked for Wirecard,» Verdon said.
Railsbank recently launched in Australia, where it has inked a partnership with Volt and Mastercard. It is also looking forward to growing in the Philippines and Indonesia, Verdon said.
