Start accepting coins
Eliminate borders with CoinsPaid
Your comments
By submitting the request you agree to our Privacy Policy and confirm you are not acting for or on behalf of someone else.
The fintech and payments industries have been quaked by a major scandal after Wirecard AG filed for insolvency on Thursday, June 25th, forcing Payoneer to halt all prepaid MasterCard cards.
The scandal erupted when Wirecard AG, a German payment processor and financial services provider that is listed on the Frankfurt Stock Exchange, filed for insolvency. The application was filed in response to a major scandal regarding the misappropriation of over $2 billion. The accounting scandal has already seen the company's CEO Markus Braun arrested and sent shockwaves across the financial world, affecting millions of users around the world.

One of the immediate consequences of the insolvency of Wirecard was the freezing of all prepaid card activities for Payoneer users who have MasterCard Payoneer cards. Among other companies affected by the scandal are Curve, Revolut, Pockit, and others.

Payoneer is a popular service among freelancers in Africa. Among the other platforms connected to Payoneer cards are Freelancer, Fiverr, gettyimages, upwork, 99designs, peopleperhour, topcoder, envato, Pond5, and many others that have all had to freeze their activities as a result of the FCA's decision to halt operations of Wirecard.

The situation developing with Payoneer and Wirecard is yet another exemplary demonstration of the shortcomings of the current financial system, which is extremely vulnerable to internal conflicts of payment operator companies that spill over and affect the operations of service users. The latest scandal makes it clear that service providers, such as freelance, gaming, content and other platforms need to have alternative options for providing payment gateways to their users.

The freezing of user funds is a clear violation of the principle of freedom of the users to dispose of their money and their complete dependence on the natures of the service providers.

A viable and fully legal alternative is the use of cryptocurrencies for settlements and online payments. The decentralized nature of digital assets leaves them and their holders independent of the tribulations experienced by service providers.
Start accepting cryptocurrency and avoid blocked operations
The aftermath of the scandal with Payoneer is certain to result in greater adoption and acceptance of cryptocurrencies from the business sector. The advantages offered by decentralized solutions include the availability of payment receipts and transfers 24/7 around the world with 99.9% uptime. The advantages of using cryptocurrencies for settlements in the B2B sector also include:
  • Quick connection without rolling reserves requirements;
  • Integration within 48 hours;
  • Storage of funds with the service provider without risks of freezing;
  • Retention of customer loyalty in case of force majeure due to the disabling of card acquiring.

The drop in settlement rates for all users of Wirecard and Payoneer will be the true consequence of the scandal, raising many questions about the reliability of such platforms.
Test our solution
before you start to pay
We provide 0% fees on all operations up to $10 000 during COVID-19.
* Please note that the free service will be available after our onboarding procedure.
© 2020 CoinsPaid
Dream Finance OU (Reg No. 14783543)
Harju maakond, Lasnamäe linnaosa, Väike-Paala tn 2, Tallinn, 11415, Estonia
VAT: EE102212301
License No.: FVT000166.