Wirecard and Varengold Bank Team Up to Offer Payment Solutions to FinTechs

The collaboration will provide firms with access to capital to refinance loan portfolios

Hamburg-based financial technology firm Wirecard and Varengold Bank, a German provider of FinTech financing, announced today the launch of a new strategic cooperation.

Varengold Bank  is a marketplace lender with an extensive track record in refinancing loan and credit portfolios in this sector. The bank has additional presences in London and Sofia and existing partnerships with FinTech firms across Europe, such as LendInvest, Grover, and Monedo (formerly Kreditech).

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Together, Wirecard and Varengold Bank will provide ambitious FinTechs looking to scale their operations with access to capital to refinance their loan portfolios, combined with a comprehensive set of white-label payment solutions.

The European FinTech sector is expected to grow 11% CAGR between 2020 and 2025, according to market research firm Adroit.

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As FinTech providers grapple to scale at pace to meet surging demand, access to credit is often cited as one of the greatest challenges.

The new cooperation will bring Varengold Bank’s customers closer to Wirecard’s banking-as-a-service expertise, spanning digital banking, prepaid card issuing, acquiring and loan fronting services. Meanwhile, Wirecard’s customers will benefit from Varengold Bank’s capabilities in creating tailor-made financing solutions.

Helping FinTechs grow

“At its core, this collaboration is about fuelling the growth of ambitious FinTech companies. The partnership with Varengold will provide a unique and meaningful offering, helping customers refinance their loan portfolios while simultaneously accessing market-leading payment solutions. These are complementary services which are in high demand, and therefore will unleash added value to our customers,” said Leonard Coen, head of sales financial institutions and FinTech Europe at Wirecard.

“Refinancing loan portfolios can be a significant challenge for any company, but particularly for fast-growth FinTechs in the corporate or consumer credit space looking to expand their operations,” Lukas Diehl, head of marketplace banking at Varengold Bank, said.

“Our message to FinTechs is that we strive to provide the best services in the market. Wirecard shares these this aspiration and, as a preferred partner of Varengold, will be able to provide a range of Banking-as-a-Service solutions that supplement our liquidity and our own fronting services,” he added.

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