Cross-border investigation accuses payments giant Worldline of enabling billions in high-risk transactions for suspected clients triggering stock plunge, but denies wrongdoing.
Payment processor Worldline says it is “fully committed to strict compliance with regulation and risk prevention standards” following allegations of fraud from the European journalism network EIC.
In a statement on June 25, Worldline stated that wherever the Group identifies indications of non-compliant situations, “additional checks are immediately undertaken, potentially leading to termination of the client relationship.”
Worldline’s statement comes in direct response to a media investigation led by EIC and 21 media outlets alleging the company processed payments for high-risk, potentially fraudulent sectors like online gambling and adult services.
NRC, a daily dutch newspaper, stated Worldline had “structurally covered up customer fraud in recent years” despite warnings from its risk department, and used tactics to reduce the fraud rate of its clients.
This was made possible because, according to NRC, when a corporate client or merchant had a high number of fraudulent customers, they were simply moved to another division. The outlet claimed Worldline’s decision to obscure these types of clients “made it possible for thousands of consumers to be scammed via webshops and websites”, including incidents where unauthorised payments were withdrawn from customer bank accounts.
NRC’s report is just one forming what has been named the “Dirty Payments” investigation, which further alleges this process saw Worldline accept “questionable” clients from high-risk branded companies, such as gambling and adulting dating sites.
In its statement, Worldline said it had conducted a “thorough review” in 2023 of its relationships with high-risk brands, a process which impacted both merchants and customers. As a result, the company reported a run-rate revenue of €130m in 2024.
Global Collect Services (GCS), Worldline’s Dutch-facing company, were also alleged to have enlisted “dubious” customers and were investigated by the Netherlands Central Bank (DNB) in 2022 over weak controls of its management of high-risk clients. GCS ultimately had to rescreen its customers as part of a large-scale operation.
Worldline’s response to allegations
In light of the alleged ties to client fraud to protect its own revenues, Worldline issued the following statement: “Worldline operates in a demanding and constantly evolving regulatory environment, especially the one related to HBR (High Brand Risk) sectors, such as online casinos, online stockbroking or adult dating services.
“Since 2023, the Group has strengthened its merchant risk framework to ensure full compliance with laws and regulations, conducted a thorough review of its HBR portfolio— which currently accounts for approximately 1.5% of its acquired volumes — and has terminated commercial relationships deemed non-compliant with its strengthened merchant risk framework.
“All HBR clients still active within this portfolio are now subject to enhanced oversight, based on specific procedures. Additional requirements in terms of controls, verifications and evidence documentation have been introduced to ensure ongoing alignment with regulatory obligations and our enhanced internal standards.”
Worldline reiterated it is committed to strict compliance due to the nature of the dealing with high-risk brands and will carry out immediate additional checks if non-compliance with one of its clients occurs.
However, the statement seems to have had little impact. NRC stated Worldline’s response to the allegations “does not answer the questions [they] asked the company. The group came up with a general statement warning that the payment processor sector is facing ‘ever stricter requirements from regulators’, banks and credit card companies.”
Already causing shockwaves
Since the allegations were made in the Dirty Payments report, Worldline’s stocks have dropped by 37% in the last 24 hours of trading, according to Yahoo Finance.
Worldline shares have been falling since 2021, from as high as €84 in April 2021, to €2.89 as of the time of writing.
