How Worldpay is approaching Brexit
The date when the UK is formally set to leave the EU is approaching, and Worldpay is getting ready.
Following the triggering of Article 50 by Theresa May in March 2017, the UK is due to leave the European Union on the 29th March 2019. The future relationship between the UK and the EU after this date currently remains unclear. Worldpay can assure you that we have considered all the possible outcomes and are working to implement a strategic solution that will ensure the continuation of our services in the UK and Europe.
Worldpay is assuming the eventual loss of passporting rights when the UK leaves the EU, meaning companies will not be able to provide payment services across the UK-EU border. Passporting allows Worldpay to use its licenses in the UK and The Netherlands to provide services from the UK to the EU and vice versa.
Exactly when entities will lose these rights is still not known. The EU and UK have in principle agreed a transition period which would finish in December 2020, but if a withdrawal agreement cannot be agreed, in a so-called ‘no deal’ scenario, the provision of payment services across the UK-EU border will have to end in March 2019.
The good news is that Worldpay is well placed to deal with a loss of ‘passporting’, as we have payment institutions in the UK and EU that have all the required regulatory licenses to serve customers in their relevant jurisdiction.
Having considered the probability of each scenario occurring and the effects these could have on Worldpay and our customers, Worldpay is planning to implement its solution by March 2019. This will let us provide business continuity and minimal service disruption for all of our customers, regardless of the outcome. We are closely monitoring the political situation and may defer our planned changes if there are any significant developments.
What does this mean for Worldpay?
Even though we have all the necessary regulatory licence agreements to operate throughout Europe and the UK after Brexit, our systems are currently set up on the basis that Worldpay entities can provide services across the UK-EU border. For Worldpay to continue to compliantly provide payment services to all customers, some work is required on our core platforms, and we will need to re-align our contractual agreements with some of our customers to the Worldpay entity that is legally allowed to provide them with those services after Brexit.
Worldpay has assessed the technical work and prioritised it for development, and this is on track to be completed by early 2019. If at this point we do not have enough certainty that there will be a transition period, we will need to proceed with a ‘switching’ event to align customers to the correct Worldpay entity on our platforms. If a withdrawal agreement is signed, we will be able to defer this to a later date.
Contractual amendments to reflect any change in the legal entity providing services to customers will be issued to all affected customers with appropriate prior notice. Worldpay do not intend to give such contractual amendments effect unless and until required.
What does this mean for you?
Most of our customers will not be impacted by our Brexit plans as they are already contracted to a Worldpay entity that is legally allowed to provide them with services after Brexit. For those that are, aside from being contracted to a different Worldpay entity, we believe the effects will be minimal, consisting mostly of small changes to their invoices. We will communicate further information on our plans and their impacts over the next few months.
Marcus Hall, Corporate Communications & Events Manager, Worldpay