Your Wirecard e-cash was safe until it wasn’t

The collapse of fintech darling Wirecard AG into insolvency proceedings is a total embarrassment for Germany, whose regulatory apparatus and corporate-governance system failed to properly scrutinise the company’s accounting practices even as red flags kept being waved.

But it’s also a serious problem for the U.K., where a burgeoning fintech industry grew up around Wirecard. The German company’s British subsidiary, Wirecard Card Solutions, has an “e-money” licence, which allows it to handle digital cash without fully becoming a deposit-taking bank. As a member of Mastercard and Visa’s payment networks, the unit is able to issue cards under those brands.