Germany’s Wirecard buys Chinese payments firm AllScore

Photo: Wirecard

Wirecard AG agreed to buy Beijing-based AllScore Payment Services, giving the German provider access to a potentially lucrative Chinese license for processing credit-card and mobile transactions.

Under the deal, Wirecard will buy 80% of AllScore shares for as much as 72.4 million euros ($80.6 million) and has an option to buy the rest after two years for 20.2 million euros, the Aschheim-based company said in a statement Tuesday. China’s central bank, which oversees the $27 trillion payments market, didn’t immediately respond to a fax seeking comment.

Wirecard, which has been addressing allegations of accounting fraud raised by the Financial Times, would become the latest non-Chinese institution to acquire a payments license, helping it tap the country’s expanding market.

Paypal Holdings Inc. in September received a green light for its purchase of a majority stake in Chinese rival Gopay Information Technology Co., allowing it to take on domestic giants WeChat Pay and Alipay.

China allowed foreign companies to enter its payments market from March last year, further increasing access to the world’s second-largest economy. Applicants must set up local units, establish payment infrastructure — including disaster-recovery systems — and store client information domestically, the People’s Bank of China said.

In October, Wirecard raised its long-term guidance, expecting transaction volume to rise to more than 810 billion euros through 2025. The company is due to publish third-quarter earnings on Wednesday.

Wirecard said Tuesday it expects an integrated AllScore to generate more than 35 million euros in earnings before interest, tax, depreciation and amortization in 2021 and more than 50 million euros in 2022.

Bloomberg

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.