Wirecard left a $30B hole in European fintech — can Dutch startups fill the gap?
Amsterdam’s fintech scene is buoyed by the city’s history
Estimates say 450 companies are active in the Amsterdam fintech scene
But, the question about who would succeed Wirecard was already answered in late August, when London-headquartered banking-as-a-service startup Railsbankconfirmed it acquiredWirecard’s UK assets (including its card technology, customers, and employees), with plans to leverage them to drive global expansion.
This, saysHolland FinTechfounder Don Ginsel, meant firms relying on Wirecard’s infrastructure have been able to stay in business despite its collapse, but overall trust in the service took a big hit — leaving room for Dutch startups to fill at least some of the $30 billion void left behind by Wirecard when its market value evaporated.
“That did allow companies like Mollie and Adyen to benefit somewhat, but they have different business models than Wirecard,” Ginsel told Hard Fork. “Wirecard was especially active as a ‘white label’ payments services provider and e-money institute, and therefore its business is more similar to Dutch company Intersolve, for example,” he added. “Railsbank is an upcoming player in that field and it seems to be benefiting the most.”
As forwhyAmsterdam attracts so many fintech startups, Ginsel reckons it has a lot with the city’s storied history stretching back to the founding of the Amsterdam Stock Exchange in 1610.
“Amsterdam has been a city of trade for a long time and you will find that spirit also in the financial (fintech) industry, especially the parties related to the stock exchange, market makers, asset managers, investment institutes, and brokers,” said Ginsel.
“Similarly to how trade relates to transactions, payments does, too. And so, with the rise of e-commerce, Amsterdam’s strong tech culture started producing payments methods for this new industry.”
In any case, foodslingers DeliveryHeroliterallytookWirecard’s place in Germany’s most prestigious stock market index last month, and DeliveryHerorelies on Adyento process its payments.
For now, we’ll have to wait and see if Railbank’s acquisition of Wirecard UK plays out in the long run.
Until then, you can explore Amsterdam’s thriving fintech scene with Amsterdam FinTech Week 2020, an online event running all week. Check outthe agenda, RSVP, and tune in live here.
Story byDavid Canellis
David is a tech journalist who loves old-school adventure games, techno and the Beastie Boys. He’s currently on the finance beat.David is a tech journalist who loves old-school adventure games, techno and the Beastie Boys. He’s currently on the finance beat.
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