Wirecard collapse hits users of British payments apps

Linda J. Dodson

The collapse of German payments provider Wirecard is having knock-on effects on British financial technology companies, with many customers being blocked from withdrawing money or using their accounts.

Digital bank Pockit – which provides accounts for those unable to get a traditional bank accounts – and account management tool Curve are among those affected. 

One Pockit user, who did not want to be named, received an email from the bank saying that their account was temporarily unavailable. 

“As far as I’m aware this is due to the Financial Conduct Authority doing something with a the card issuer to protect funds in British accounts. My worry now is that I will lose the funds on my card,” they said. 

They used the account as a way of saving up spending money for holidays. “It would mean I don’t have the spending money I expected, for sure,” they said. 

Two weeks of spending money for a holiday in Padstow, Cornwall, was stored in account and can no longer be accessed.

Another Pockit user said their account was used as their main savings vehicle.

“It’s a disaster. While they’ve reached out to me to let me know it’ll get resolved, I am worried about losing access to the service and savings,” they said.

“There are people I know who use it as their main account and will no longer be able to spend money. All their money is currently electronic due to coronavirus.”

Pockit sent out an email to customers, seen by Telegraph Money, saying that customers would temporarily not be able to use their contactless card, make payments and transfers online, get cash out, or add and receive money to accounts. 

One Twitter user, JenkzinoSupreme, said they had sent money from their Pockit account last night but it had not reached its destination and it is no longer in their account. 

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