Wirecard, a financial services and technology company based in Germany have completed the acquisition of CitiPrepaid Card Services based in the US. It was announced by the company on June 29th, 2016. This is their first step to enter the North American market. They agreed to buy CitiPrepaid Card Services, the terms of which are undisclosed terms.
Wirecard Acquires CitiPrepaid Card Services
Wirecard happens to be a leading group of companies operating in the field of card issuing and payment processing. This globally recognised company has more than 100 new employees in Pennsylvania and Conshohocken. They also have extra 20 employees working in different international locations.
According to the company, the firm that they acquired will benefit them by adding over $20 million to their earnings before tax, interest, amortization, and depreciation in the 2017 fiscal year.
With this acquisition, the company has been able to grow its global presence into the North American market. They have officially acquired CitiPrepaid Card Services. This German company always had plans to enter the US market. This is their strategy to expand beyond Europe and thus, become an international payments player.
Wirecard prepaid have their base located in Munich, Germany. They are known to process payments for around 22,000 online merchants and retailers all across the world. They happen to be the second-largest payments processor in entire Europe. They are just behind WorldPay WPG.L. Over the years, they have expanded their business through various acquisitions. In recent years, they have entered the Middle East, Southeast Asia, and Latin America.
The company revealed in a statement that they expect the deal to close by the beginning of the fourth quarter.
According to Finextra, Wirecard’s plan of acquiring CitiPrepaid Card Services was known back in June 2016. CitiPrepaid Card Services have issued over 2,500 card programs for major global companies, mainly the ones based in the North American market. The list of customers of the acquired company is huge. It includes all big players like the telecommunication service providers, global IT, pharmaceutical companies, and electronics manufacturers. The customer list also consists of public sector clients and consumer goods corporations and the internet.
The portfolio is made of compensation and incentive cards. Along with that it also has corporate disbursement programs for travel or salaries.
The Managing Director of Wirecard Acquiring & Issuing GmbH, Susanne Steidl said that they are very excited to provide the American customers the new mobile payment solutions and digitalised prepaid cards via their international platform.
Deirdre Ives, Managing Director added that along with the new technologies from the digitalised card area, they will also introduce the omnichannel solutions and international PSP buying from Wirecardrccl onto the US market.
The existing services provided through the acquired prepaid card company will include extra functions. This is to benefit corporate customers from value-added services like digital card solutions.
This particular acquisition allows Wirecard to grow and expand its features. As already mentioned before, this is going to beneficial for corporate customers as digital card solutions will be all loaded in real-time. Wirecard customer service is also quite efficient.