Wirex may suffer card outage in EEA due to UAB PayrNet licensing issue

Debit cards provided through crypto payment service Wirex may stop functioning in the European Economic Area (EEA), according to a June 23 email the company sent out to a few of its clients. The hazard of blockage was set off by Lithuanias central bank revoking the license of UAB PayrNet, Wirexs card provider.This news follows Wirexs competitor, Cryptopay, likewise announced that its cards may stop working in the area due to the exact same issue.June 22 email sent out to Wirex customers. Source: WirexWirex is a multi-currency crypto payment app that features fiat on-ramps and off-ramps, in addition to debit cards. It declared in 2020 to have over 3 million users throughout Europe and Asia.The email sent to consumers stated that “our current card partner has actually experienced issues and this is triggering a disturbance in the debit card service for EEA customers.” This disruption “has no effect on your ability to access your funds through any other Wirex suggests, such as our IBAN service, or via transfer and purchase of cryptocurrency on the Wirex app.” Customers do not need to take any action as an outcome of this info, given that funds are kept in the app and untouched by the card services issue.Wirex stated that the reason for the issue was UAB PayrNet, not any problems within Wirexs system.Related: Robinhood buys credit card fintech X1 for $95MOn June 22, the Bank of Lithuania announced it was revoking UAB PayrNets electronic money organization (EMI) license “for serious, multiple and organized violations of legal acts.” To name a few allegations, the reserve bank declared that PayrNet stopped working to appropriately administer Anti-Money laundering (AML) arrangements to avoid its services from being used for illegal financing.In its announcement, the Bank of Lithuania claimed that customer funds are safe, stating that they are “safeguarded in separate devoted accounts.”Cointelegraph has actually attempted to get in touch with UAB Payrnet through email, however has not gotten a response by the time of publication. Payrnets director, Stephenas Couttie, apparently claimed that the reserve banks actions are “not appropriate for the offenses committed,” according to a Google translation of text from Lithuanian news site Verslo Žinios. This seems to suggest that the director feels PayrNet is undergoing excessive penalty, disproportionate to the violations dedicated. In its e-mail to customers, Wirex said it is changing to Transact Payments Malta Limited to handle its debit card services. This strategy was already in the works, however is being sped up due to the current issues. It is “striving” with both PayrNet and Transact to get its debit card system up and running again as quickly as possible.In the meantime, consumers in the EEA region might not have the ability to use their cards.Wirex has been expanding its service offerings over the previous 2 years. In August 2022, it partnered with 1Inch to offer wallet-based token swaps to its clients. In February 2022, it integrated with the Avalanche (AVAX) network, allowing users to deposit AVAX and spend it through a debit card.

Other Questions People Ask

What caused the potential card outage for Wirex in the EEA?

The potential card outage for Wirex in the EEA is primarily due to the revocation of UAB PayrNet's electronic money institution license by the Bank of Lithuania. This action was taken because PayrNet allegedly failed to comply with Anti-Money Laundering (AML) regulations, which has led to disruptions in debit card services for Wirex customers. As a result, users in the EEA may experience difficulties using their Wirex cards.

How does the UAB PayrNet licensing issue affect Wirex customers?

The UAB PayrNet licensing issue directly impacts Wirex customers by potentially rendering their debit cards non-functional in the EEA. Wirex has communicated that while card services are disrupted, customers can still access their funds through other means available in the app, such as IBAN services or cryptocurrency transactions. Therefore, users do not need to take any immediate action regarding their funds during this outage.

What steps is Wirex taking to resolve the card outage issue?

To address the card outage issue, Wirex is transitioning to a new card provider, Transact Payments Malta Limited, to ensure continuity of service. This change was already planned but has been expedited due to the recent problems with UAB PayrNet. Wirex is actively working with both PayrNet and Transact to restore its debit card services as quickly as possible for its customers in the EEA.

Will customer funds be safe during the Wirex card outage?

Yes, customer funds remain safe during the Wirex card outage. The Bank of Lithuania has assured that customer funds are safeguarded in separate dedicated accounts, which means they are not at risk due to the licensing issues faced by UAB PayrNet. Wirex has also confirmed that users can still access their funds through other services within the app, ensuring continued financial security.