Shares in Worldline SA, the French payments group, fell nearly 40% on Wednesday, erasing over €500 million in market value following the publication of a series of investigative reports accusing the company of concealing fraudulent activity by several of its clients, Investing.com reported.
The allegations, reported by Bloomberg and the European Investigative Collaborations (EIC) network, claim that Worldline continued doing business with high-risk clients—some allegedly linked to pornography, gambling, and other “high brand risk” sectors—despite multiple warnings from internal risk teams and third parties.
Among the most serious claims, Dutch newspaper NRC reported that Worldline failed to sever ties with clients exhibiting unusually high fraud rates, prioritizing revenue over compliance. Swedish outlet Dagens Nyheter alleged that, after Visa raised concerns about certain merchants, Worldline transferred some of these clients from its Belgian subsidiary to its Swedish operation to evade regulatory action. Meanwhile, Germany’s Der Spiegel reported that Payone, a Worldline majority-owned subsidiary, neglected mandatory due diligence requirements for several clients, potentially breaching anti-money laundering obligations.
The reports have triggered one of the sharpest single-day drops in the company’s stock history, with shares closing down 38.26% after being suspended several times throughout the trading session on Euronext Paris. The company, which once traded with a market capitalization nearing €24 billion, has now seen its share price collapse by around 96% from its 2021 peak.
In response to the accusations, Worldline issued a formal statement rejecting the core claims. It emphasized that it operates within a stringent regulatory framework and has taken significant steps since 2023 to overhaul its merchant risk controls. According to the group, it conducted a full review of its high brand risk (HBR) client portfolio—representing approximately 1.5% of its acquired volumes—and terminated business relationships deemed non-compliant with its enhanced risk framework. These actions impacted merchants accounting for €130 million in annualized revenue as of 2024.
Worldline also stated that its fraud ratio remains below the industry average, based on the most recent international payment scheme benchmarks. The company has implemented new procedures that require elevated oversight for remaining HBR clients, including enhanced verification, documentation, and control standards. It has also expanded both its first and second-line compliance teams as part of its ongoing Financial Crime Compliance strategy. According to the company, any indication of non-compliance triggers immediate investigation and may result in the termination of the client relationship.
Chief Executive Officer Pierre-Antoine Vacheron addressed the market in a conference call late Wednesday in an attempt to contain the fallout. According to a note from Morgan Stanley, Vacheron stated that all necessary terminations of problematic merchants had already been completed and that the company was unaware of any further regulatory investigations beyond routine audits. Nevertheless, the broker cautioned that several key concerns remain unresolved, including the potential impact on merchant retention, investor confidence, and future regulatory scrutiny.
“These are all questions that must be answered for investors to regain confidence and re-engage with the stock,” Morgan Stanley analysts wrote in their note.
On Thursday, Worldline’s shares showed modest signs of recovery, rising by as much as 12.1% in early trading. However, the longer-term implications of the reports remain uncertain. The allegations strike at the heart of Worldline’s credibility at a time when the company is trying to stabilize operations and restore its reputation in the wake of financial and structural setbacks.
Worldline’s executive management and board have reiterated their “zero-tolerance” stance and expressed full commitment to enforcing regulatory standards and internal controls. However, as scrutiny intensifies, the company may face mounting pressure from both regulators and investors to demonstrate that its compliance failures, if any, are fully and definitively addressed.
