Citi Sells Prepaid Card Services to Wirecard
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Citigroup reached an agreement with Wirecard AG in which its Prepaid Card Services, including its 120 employees, will be transferred to Wirecard. This deal will bring Wirecard to the United States for the first time.
Munich-based Wirecard currently processes payments from 22,0000 retailers and online merchants. In Europe, it is second only to WorldPay.
According to a Reuters report, Wirecard believes this deal with Citi could add more than $20 million in earnings in the 2017 fiscal year.
The deal will be finalized after the banks have obtained regulatory approvals and other customary closing conditions. The transaction will likely close during the fourth quarter of 2016.
“This transaction is a positive outcome for our clients and employees of Citi’s Prepaid Card Services which will become part of an industry leader that is poised for growth. We are especially pleased that all Citi employees supporting this business will have the opportunity to join such an innovative company,” said Francesco Vanni d’Archirafi, CEO of Citi Holdings. “Today’s transaction marks yet another important milestone in our strategy to continue the reduction of assets and businesses in Citi Holdings.”