Why all Prepaid Mastercard® Cards issued by Payoneer have been Frozen

Andrew Cummings
June 29, 2020

Issuing a regulatory notice, the FCA stated that Wirecard UK can no longer carry any regulated market activities. ANNA Money, a freelance business account provider, told users on Twitter to "urgently" withdraw their money.

It said there are around 50,000 cards in circulation but can not confirm the amount of money on them.

U Account customers' money is held by Barclays meaning the funds are ringfenced and not at risk, Morses said.


The Emerging Payment Association has written to the regulator calling for fast action to avoid lasting damage to the United Kingdom fintech sector: "The Emerging Payments Association (EPA) and its members strongly urge the FCA to unfreeze Wirecard Card Services accounts as soon as it can, for the sake of cardholders, companies and their employees, and the United Kingdom fintech industry. We apologize for any inconvenience this may cause and we'll update you with more information as soon as we have it", the company added. We expect this to be completed within 48 hours.

According to a press release published by the FCA, debit card issuer Wirecard is now under investigation in Germany over law enforcement interest and insolvency proceedings. The company, once worth over €20bn (£18bn, $22bn), collapsed after admitting to a €1.9bn hole in its balance sheet.

"Our primary objective is to protect the interests and money of consumers who use Wirecard", the FCA said in a statement.


Former boss Markus Braun has been arrested and accused of inflating Wirecard's finances to make them appear healthier to investors and customers.

The regulator, the Financial Conduct Authority (FCA) said it had ordered Newcastle-based Wirecard Card Solutions "to cease all regulated activities in order to further protect customer money". "However, we can not lift the restrictions without reassuring ourselves that the firm has been able to satisfy all our concerns for example that all clients' money is safe".

Mobile business account Anna Money, which was also hit by the fallout, has vowed to replace user's frozen cash from its own pockets, reassuring customers that their accounts remain safe.


Funds are not protected, as they are in banks, by the Financial Services Compensation Scheme, but the firm said customers' money was held safely in segregated accounts.

Other reports by iNewsToday

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