Worldline Stocks Lost Over 41% after Client Fraud Cover-Up Allegation

Shares in Worldline (EPA: WLN) plunged by more than 40 per cent today (Wednesday) before showing some recovery following an investigation by 21 European media outlets, which alleged that the payments firm covered up client fraud to protect its revenue.

“Dirty Payments” Investigation

The report, filed under the “Dirty Payments” investigation, was based on confidential internal documents and data from Worldline. It revealed that the French payments firm accepted “questionable” clients across Europe from sectors including adult entertainment, gambling, and dating websites.

In a statement issued after the media report, Worldline said it had “strengthened its merchant risk framework to ensure full compliance with laws and regulations” since 2023.

The company also disclosed that 1.5 per cent of its acquired transaction volumes came from “high-brand risk” sectors, such as online casinos, online stockbroking, and adult dating services. It added that it had ended commercial relationships that were no longer deemed suitable.

“As indicated in previous financial communications, these decisions affected merchants representing €130 million in annual revenue in 2024,” the company stated, also noting that its fraud ratio is below the industry average.

Earlier this year, the company onboarded Pierre-Antoine Vacheron as the new CEO.

Read more: Worldline Deepens BKN301 Alliance, Targets EMEA Fintech Growth

Worldline Stock in Freefall

Despite reiterating its “zero-tolerance” stance on non-compliance, the market responded harshly.

Listed on the Paris Stock Exchange, Worldline shares have been falling since early Wednesday. The stock lost over 41 per cent in a single day, with no sign of support.

Even before this latest report, Worldline shares were under pressure. Following the crash, they have now lost more than 96 per cent of their value since mid-2021.

The company generated €4.63 billion in revenue in 2024, an increase of just 0.5 per cent from the previous year. However, it reported a net loss of €297 million for the year, driven by a large mark-to-market charge on preferred shares. Still, this was an improvement from the previous year’s €817 million loss, which was primarily due to a €1.15 billion goodwill write-down tied to its merchant services division.