Citi Prepaid Card Services Acquired by Wirecard

Wirecard is about to enter the U.S. market after the company entered an agreement to buy Citi Prepaid Card Services.

The German banking software company announced the deal with Citi Wednesday (June 30), but did not offer up terms of the deal. But according to a Reuters report, Wirecard said it anticipates it could add more than $20 million in earnings (pre EBITDA) in the 2017 fiscal year as a result of the acquisition. As part of the deal, Wirecard will keep the 120 employees in the unit.

This marks the first venture of its kind to officially bring Wirecard into the North American market, a move the company has been discussing for some time. This expansion will now help grow its payments footprint outside the European market and give it the chance to test its skills in new markets abroad.

Wirecard is a company based in Munich that processes payments from 22,000 retailers and online merchants worldwide.

It falls second in size to WorldPay in Europe, and has a presence in Southeast Asia, the Middle East and Latin America. The deal between Wirecard and Citi will close as early as Q2 if the regulatory details are approved.

According to Reuters’ report, Wirecard said Citi Prepaid Card Services has launched more than 2,5000 services for top companies and brands across North America. Wirecard noted that the prepaid card business fits in line with its expansion plans, citing a report from Global Industry Analytics that projects the global prepaid card market volume to grow to $3.1 trillion by 2022.