BaFin measures against PAYONE - What does this mean for the future of the payment service provider?
The financial supervisory authority BaFin has once again identified serious deficiencies in Payone's anti-money laundering and IT processes. This has led to increased capital requirements and the appointment of a special commissioner. But what does this mean for Payone, its parent company Worldline and the savings banks?
Backgrounds
In 2023, BaFin had already identified serious deficiencies in the prevention of money laundering at Payone, which led to restrictions in business with high-risk customers. A special audit in 2022 revealed that Payone did not fully comply with the requirements of the Payment Services Supervision Act (ZAG), particularly in the areas of IT and IT processes. In addition, the 2023 annual audit showed that the legal requirements of the Anti-Money Laundering Act (AMLA) were not complied with in all areas audited and that the payment service provider had significant deficits in the legally compliant auditing of its customers.
Measures taken by BaFin
Due to these deficiencies, Payone must now hold more own funds until the organizational deficits have been rectified. In addition, BaFin has appointed a special representative to monitor the implementation of the measures and keep an eye on future developments. These steps have been legally binding since November 17, 2024 and January 21, 2025 respectively.
Effects on Payone and Worldline
The appointment of a special representative indicates that BaFin expects it will take longer to resolve the problems. In the past, BaFin had already deployed special agents to other payment companies and fintechs, who often stayed longer than planned and discovered further problems. This could also be the case with Payone and represents a further setback for the company.
The new restrictions are also worrying for Worldline, Payone's largest shareholder. The company has already had to issue several profit warnings in connection with the problems at Payone. In July 2024, it was announced that one in ten jobs at Payone would be cut by this time.
Reaction from Payone
Payone has confirmed the steps taken by BaFin and emphasized that the company has significantly strengthened its equity base at the end of 2023 to underpin its financial solidity. This capital increase was supported by the shareholders S-Payment (DSV Group) and Worldline. Payone sees BaFin's decision as an opportunity to optimize its business activities and assures that regular business operations will continue unchanged.
Conclusion
The measures taken by BaFin against Payone show how important proper business organization and effective money laundering prevention are. For Payone and its parent company Worldline, however, this means considerable challenges. As such fundamental structural changes within the business organization often entail unforeseen delays, it remains to be seen how quickly and effectively the identified deficiencies can actually be remedied and what long-term effects this will have on the company.
