ING was so upset with its fintech subsidiary that last September the most profitable portfolio, that of the porn customers, was silently transferred to a former owner of Payvision for one euro.
More than a month earlier, ING had to write off more than half of Payvision, which cost the bank 350 million euros in 2018.
According to ING, the write-off of 188 million euros on Payvision is related to the corona crisis. Other payment service providers are doing good business because of the corona crisis. The number of online transactions is increasing enormously under the influence of the lockdowns.
Very strategic
At the time of the acquisition, then CEO Ralph Hamers called the fintech ‘very strategic’. In the meantime, Payvision had been on the radar of the American money laundering watchdog FinCEN and several American banks for years because of the processing of suspicious transactions and serving customers who could not get into the regular banking circuit.
This is evident from a dozen state-secret transaction reports that are part of the FinCEN Files, in the hands of the journalist collective ICIJ. The FD has access to these documents.
Satisfied
ING says it is still satisfied with the acquisition of Payvision, according to the FD. The bank sees the investment as a long-term deal. Since more and more of their business customers are also selling online, Payvision’s technology comes in handy.
The bank indicates that in recent years hard work has been done to reduce the risks at Payvision. A large number of customers have been said goodbye. As a result, the company’s turnover and profit lag far behind the rest of the payment market. The bank maintains that the write-off of 188 million euros is corona-related.
After the takeover of payment processor Payvision, ING says it has from the outset made efforts to say goodbye to customers who do not fit the bank’s risk profile, the bank reports in a response to the report from Het Financieele Dagblad. This includes porn and gambling customers, says ING, which does not discuss amounts.
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