Softbank Set To Invest €900m For Stake In Digital Payments Firm

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Softbank has agreed to invest €900m (£781m) in German fintech firm Wirecard as part of a digital payments partnership in Asia.

The investment giant from Japan has signed a deal to acquire five-year convertible bonds in Wirecard, which is roughly 5.6 percent of the stock of the firm, at €130 per share.

This morning, the shares in Wirecard increased by more than eight percent following the announcement.

The new investment comes as part of a strategic partnership in digital payments, as Wirecard aims to expand in both South Korea and Japan.

The German company said that the partnership is also anticipated to extend to new product and service offerings in digital lending.

The chief executive of Wirecard, Markus Braun, stated: “As global innovators, we focus heavily on expanding our networks and creating opportunities for companies with groundbreaking ideas.”

He added: “In Softbank, we have found a partner that shares both our passion for new technologies and drive to spearhead the latest innovations, all on a global scale.”

Wirecard has been involved in controversy in the past months after the allegations of fraud and false accounting at its Singapore office.

Last month, an independent probe that was conducted by a law firm discovered evidence that the crimes may have been committed, however, it cleared the company of any wrongdoing.

The investment of Softbank is subject to approval by Wirecard shareholders.