PARIS (Reuters) – Orange’s banking division may replace its partnership with stricken German payments company Wirecard in August, a senior executive at the French telecoms group said on Thursday.
Wirecard has disclosed a $2.1 billion hole in its accounts, sending its shares down by more than 90% and prompting it to file for insolvency.
Orange Bank, the telecoms group’s three-year old banking service, has a partnership with Wirecard to process customers’ mobile payments. Their cooperation allows mobile payment with Google Pay and Apple Pay.
“We started a review several months ago … and Wirecard is part that review,” Orange’s deputy chief executive officer for mobile finance services Paul de Leusse told reporters on a call.
“One can indeed expect some announcements on electronic banking and Orange Bank in August,” he added, when asked if the group would replace the partnership with Wirecard.
Wirecard competes against Ingenico, which is in the midst of being bought by French rival Worldline, as well as U.S. company PayPal, among others.
Other major French clients of Wirecard include Credit Agricole.
Reporting by Mathieu Rosemain; Editing by Mark Potter