WEX Inc. (WEX) owns and operates a Business-to-Business (B2B) ecosystem that helps the company’s customers overcome highly manual processes and reconciliations, navigate the complexity of consumer driven healthcare benefits, and solve their administrative challenges.
WEX offers the marketplace a unique combination of capabilities to simplify complexity, thereby setting WEX’s offerings apart from those of the company’s competition.
The company’s technology is engineered and operated with global...
WEX Inc. (WEX) owns and operates a Business-to-Business (B2B) ecosystem that helps the company’s customers overcome highly manual processes and reconciliations, navigate the complexity of consumer driven healthcare benefits, and solve their administrative challenges.
WEX offers the marketplace a unique combination of capabilities to simplify complexity, thereby setting WEX’s offerings apart from those of the company’s competition.
The company’s technology is engineered and operated with global scale and reliability. It has invested heavily in technology and expect to continue to do so on an ongoing basis. The company’s customers have trusted it to conduct hundreds of billions of dollars in money movements in more than 20 currencies and its products and services play integral roles in the infrastructure of businesses.
The company’s solutions are shaped by customer-focused innovation and deep industry expertise. Both in the company’s direct-to-corporate and partner channels, its solutions focus on simplifying the business of running a business by deeply embedding its solutions within its end customer workflows. Customers look to WEX for a powerful combination of specialized expertise and rich data to assist them in driving better decisions, moving more quickly, and in dealing with risk. The company puts control in the hands of its customers.
Ecosystem of Solutions
WEX offers solutions that organizations use to drive efficiencies and manage risk. These solutions, which share and benefit from the company’s underlying capabilities, are provided across the following three business segments:
Mobility
WEX reimagines mobility across fleets of all sizes. WEX has more than 600,000 mobility customers worldwide.
Benefits
WEX simplifies administration of benefits for employers, including consumer directed health accounts in the United States both directly and through partners. The company serves more than half of the Fortune 1000 companies in the United States.
Corporate Payments
WEX is both one of the largest commercial payment companies in the world, as well as a trusted technology partner for some of the largest organizations worldwide. WEX couples wholly owned market leading technology with a global issuing and funding capability.
The company’s wholly owned subsidiary, WEX Bank, funds a significant portion of its Mobility and Corporate Payments operations, provides it with a number of services, including credit adjudication, and is a depository institution for certain HSA cash assets. The company’s ownership of WEX Bank provides it with a competitive advantage through access to low cost sources of capital and liquidity and enables it to design funding solutions for customers that complement its technology solutions.
The company’s ecosystem of solutions provides it with multiple and diverse levers and opportunities to help WEX achieve its financial and business goals, including to win new customers, grow its share of wallet, expand and diversify its offering, and execute strategic mergers and acquisitions. The company’s existing and evolving technology, talented workforce, and robust customer and partner footprint all continue to drive its business forward.
During the first quarter of 2024, the company launched the general availability of its EV At-Home reimbursement solution in the United States, which automates reporting and reimbursement for any organization with EVs that employees bring to their personal residence to charge overnight. Such feature set complements its public charging access, where it already has broad acceptance.
During the second quarter of 2024, the company launched the pilot for an innovative solution tailored for truckers, 10-4 by WEX, which enables independent owner-operators and small businesses to save money on one of their largest expenses through the offering of national diesel discounts and brings a mobile-first experience that provides secure transactions at the pump. During the fourth quarter of 2024, 10-4 by WEX became broadly available.
Strategy
As a continuing innovator in the payments and business technology industry, WEX has significant experience in bringing and expanding its solutions to customers and markets. The company continue to focus on differentiating itself through the global scale and reliability of its underlying infrastructure, and by anticipating its customers’ technology needs.
The key elements of the company’s strategy are to deliver personalized solutions, seamlessly embedded; customer insights and trust; win new customers; grow share of wallet; expand and diversify offerings; and grow through strategic mergers and acquisitions.
Business Segments
Mobility segment
Within the company’s Mobility segment, WEX is a leader in fleet payment solutions, transaction processing, and information management. The company serves diverse fleet needs globally, addressing the marketplace through three different business units:
North American Mobility: Addresses the needs of businesses that utilize primarily light and medium duty vehicle fleets central to the operation of the service economy in North America.
Over-the-Road: Addresses the needs of businesses that utilize primarily medium and heavy duty vehicles central to the operation of the freight economy in North America.
International Mobility: Addresses the needs of businesses that utilize primarily light and medium duty vehicles central to the operation of the service economy outside of North America inclusive of its Fleet portfolios in Europe and Asia-Pacific.
During the year ended December 31, 2024, approximately 20 million vehicles used the company’s solutions for fleet management. Beyond fuel cards, the company’s portfolio includes SaaS solutions for field service management, telematics, reporting and analytics, cash flow management, and mixed-energy fleets.
Solution
The company’s key source of differentiation in the Mobility segment is the enhanced data and controls it provides fleet operators based on its proprietary closed-loop payments network. This proprietary closed-loop network enables it to capture rich data, deploy custom controls, and establish the economics between fleets and merchants. The company’s data and tools allow fleet owners and managers to control spend and limit fraud while optimizing their fleet operations. At the point-of-sale, it captures an array of information. Examples of information captured, which varies by type of customer, include the amount of the purchase, the driver, the vehicle, the odometer reading, the fuel or vehicle maintenance provider, and the items purchased. The company provides standard and personalized information to customers through vehicle analysis reports, custom reports, and its websites. The company also alerts customers of unusual transactions or those that fall outside of pre-established parameters. Customers can access their account information through its platform, including account history and recent transactions and download the related details. In addition, fleet managers can elect to be notified when limits are exceeded in specified purchase categories, including limits on transactions within a time range and gallons per day. In the over-the-road space, the company additionally offers fleets customizable payment solutions, including real-time interactive and seamless interfaces delivering data integrity, alternative payment and money transfer options, comprehensive settlement solutions, real-time reports and analytics for compliance and cost-optimization, and fuel reconciliation and mobile optimization tools.
In conjunction with the above, the company offers its Mobility customers the following additional products and services:
Account activation and account retention: The company provides activation and retention services that promote the adoption and use of its products.
Authorization and billing inquiries and account maintenance: The company handles authorization and billing questions, account changes, and other issues through its dedicated contact centers, which are available 24 hours a day, seven days a week. Self-service options are also provided through the company’s online tools.
Account management: The company assigns account managers to customers who operate large fleets. The company’s account managers have in-depth knowledge of both its programs and the objectives of the fleets they service.
Credit and collections services: The company extends short term credit in the majority of Mobility transactions. Related to this service it has developed proprietary account approval, underwriting, credit management, and collections programs.
Merchant services: The company’s representatives work with fuel and vehicle maintenance providers to enroll these providers in its network, test all network technology, and provide training on its processes.
Analytics solutions: The company provides customers with access to analytics platforms and custom reporting tools targeted toward identifying cost savings opportunities and managing their fleet.
Ancillary services and offerings: The company provides a variety of ancillary services and tools to fleets to help them better manage expenses and capital requirements. Additionally, beginning with November 2023, the company provided a cloud-native software solution that has various capabilities, including scheduling, dispatch navigation, marketing and payment acceptance, to Mobility field service customers in HVAC, roofing, and other similar verticals.
Building upon the company’s ICE-related fleet solutions, it is working on solutions will ease the integration of EVs into mixed fleets. The company is well positioned to help its customers transition to an expected mixed-fleet future. As fleet owners look to add vehicles powered by alternative energy sources, such as EVs, it is building on its deep experience in fleet and mobility in an attempt to develop and provide solutions to address specific customer needs, including charging, EV transition planning, and tools to successfully manage a mix of vehicle types ranging from connectivity to advanced route planning and carbon emissions reporting.
Payment processing transactions are the largest revenue source in the Mobility segment. Revenue is earned based on a percentage of the aggregate dollar amount of the customer’s purchase, a fixed amount per transaction, or a combination of both. The company extends short-term credit to the fleet cardholder as part of a typical domestic payment processing transaction. It then pays the merchant for the purchase price, less the fees it retains, generally within ten days. Revenue from the company’s European operations is primarily derived from the difference between the negotiated price of the fuel from the supplier and the price charged to the fleet customer. The company collects the total purchase price from its North America and international Mobility customers, typically within 30 days from the billing date. In the company’s Over-the-Road fleet business, the amount of time between when it pays the merchants and collect from its customers is significantly reduced relative to a typical North America or International Fleet transaction. There are instances, primarily within its Over-the-Road business, in which WEX processes a fleet customer transaction with the merchant bearing the credit risk and collecting the receivable from the fleet.
In addition to revenue derived from payment processing transactions, the company recognizes account servicing revenue on fees charged to the cardholders, finance fee revenue on overdue accounts, and other revenue on transaction processing revenue and miscellaneous other products and services.
Distribution
The company markets its Mobility products and services both directly and indirectly to businesses and government agencies with fleets of commercial vehicles, including fleets of all sizes, and over-the-road, long haul fleets. The company’s direct product suite includes payment processing and transaction processing services, WEX-branded fleet cards in North America and Europe along with Esso-branded fleet cards in Europe and Motorpass-branded fleet cards in Australia. Additionally, the WEX products and services are marketed under the EFS, EFS Transportation Services, T-Chek, and Fleet One network brands.
The company also markets its products and services using the WEX network indirectly through co-branded and private label relationships. With a co-branded relationship product, the company markets its products and services for, and in collaboration with, fuel providers and fleet management companies using their brand names and its logo on a co-branded fleet card. These companies seek to offer the company’s payment processing and information management services as a component of their total offering to their customers.
The company’s private label programs market its products and services for, and in collaboration with, fuel retailers, using only their brand names. The fuel retailers with which it has formed strategic relationships offer its payment processing and information management products and services to their customers in order to establish and enhance customer loyalty. These fleets use these products and services to purchase fuel at locations of the fuel retailer with whom the company has the private label relationship.
Competition
The company competes against similar, more specialized offerings from Corpay, U.S. Bank Voyager, Radius Payment Solutions, DKV, and Edenred and smaller, newer players which have introduced specialized products designed for distinct customer groups.
Benefits Segment
The company’s Benefits segment simplifies employee benefit plan administration through SaaS software integrated with payment solutions. It delivers diverse product offerings, including Benefit Administration, HSAs, FSAs, HRAs, COBRA and Direct Billing, and compliance administration. These solutions empower administrators, employers, and participants to make optional benefits decisions. The company’s platform's flexibility supports multiple plan types and customizable designs, adapting to market changes.
Solution
The company’s products simplify the process of navigating and managing employee benefits for plan administrators, employers, and plan participants and their families. Its solutions power a variety of benefit plans, including HSAs, FSAs, HRAs, Lifestyle Spending Accounts, COBRA accounts, wellness incentives, Medicare Advantage supplemental benefits, commuter benefits, and other account-based benefit plans. The company also provides the software that enables employees to choose and enroll in their benefits and manage those benefits throughout the plan year.
The following summarizes the company’s key products and services within the Benefits segment:
Consumer-directed benefits: The company provides a software platform for record-keeping and administration of account-based benefit plans, which reimburse eligible expenses incurred by plan participants and their eligible dependents. It also provides debit card processing services to enable immediate electronic reimbursement.
Non-bank custodial services: The company provides non-bank custodial services for HSAs, with consumer balances placed at a variety of bank depositories, including WEX Bank.
COBRA administration: The company provides a software platform for the administration of COBRA plans. In addition, the company collects and processes consumer premium payments.
Enrollment and benefits administration: The company provides a software platform that guides employees through their benefits options and enables them to enroll in the plans and access and manage their benefits information throughout the year.
Administrative services: The company provides a wide range of benefit plan administration services, including employer and participant service, claims administration, and reporting.
The company simplifies plan administration and management by providing a feature-rich software platform that automates and streamlines processes for stakeholders. In addition, through robust data analytics, it helps administrators and employers understand consumer usage and engagement and benchmark against firms of similar size, geography, and industry. These same capabilities enable the company to help consumers navigate their choices and make informed decisions about how to use their benefits. The company’s ability to gain rich insights from its expansive database enables it to provide personalized, relevant messages to consumers that connect with them where they are. The company also enables administrators to compare their performance against their peers on dozens of metrics related to growth, operating efficiency, and consumer experience. The company’s products are designed to reduce friction, lower administrative costs, and provide a more elegant user experience. Participants can use its web portal and mobile app to access and manage their benefits at anytime from anywhere.
The company’s platform supports a multitude of benefit plan types, enables customization of plan design, and is extendable to power new benefit offerings in a dynamic market, consistent with the increasing importance of choice in employer benefit strategy. Its solutions are deployed flexibly, from software-only to full benefit administration, with a wide range of options in between.
The company’s revenues derive primarily from three sources:
Per participant per month fees charged for the company’s software and administrative services;
Interest on deposits and fees related to cash balances in HSAs over which WEX Inc. is the custodian; and
Interchange on debit cards used by plan participants and their dependents to pay for eligible expenses from their benefit plan.
Distribution
The company distributes its software and payment solutions through a variety of partners, such as third-party administrators, financial institutions, payroll providers, and health plans. These partners use its software and payment solutions in their administration of employee benefit plans for their employer clients. The company’s team works with these partners to help them deploy go-to-market strategies and tactics to grow their business. In addition, it provides business process outsourcing of administrative services on behalf of certain partners.
The company distributes full administrative services to the employer market directly and through brokers and consultants. Its solutions can be fully white-labeled, co-branded, or WEX-branded.
The company’s flexible distribution capabilities enhance its ability to penetrate it addressable markets through hundreds of partners, as well as direct to employer. The company had an average of approximately 20.3 million SaaS accounts on its platform during the year ended December 31, 2024.
Competition
In consumer-driven healthcare and COBRA administration, the company competes with specialist providers like Alegeus Technologies and HealthEquity, as well as proprietary technology solutions developed and maintained in-house by plan administrators. In benefit administration software and services, it competes with pure-play providers like Businessolver and Alight Technologies.
Corporate Payments segment
The company’s Corporate Payments segment delivers global B2B payment solutions, powered by payment intelligence and workflow optimization, that enhance security, simplify processes, and drive revenue. Leveraging scale, network incentives, global expertise, and its supplier enablement team, the company optimizes revenue for its customers. The company’s capabilities and solutions broadly fall into two categories:
Embedded Payments: The company’s customizable Embedded Payments solution seamlessly integrates virtual payment capabilities into existing workflows, whether payments are core to the business, part of critical operations, or an added customer offering. This versatile solution empowers a broad range of industries, including online travel.
Direct to Corporate: The company’s Direct to Corporate solution automates Accounts Payable by integrating with Enterprise Resource Planning software systems and accounting workflows to maximize virtual payment usage. Its solutions in this space address corporations of all sizes, are sold direct to customers and offered as white-label partnerships with financial institutions who license the company’s technology.
Solution
The Corporate Payments segment allows businesses to centralize purchasing, simplify complex supply chain processes, and eliminate the paper check writing associated with traditional purchase order programs. It also enables technology companies and innovators across the globe to streamline their payment needs with a single, integrated technology and issuing partner. The company combines wholly-owned and developed cloud-based technology along with its wholly-owned and operated global financial services capabilities, inclusive of WEX Bank and its various electronic money institutions around the world, to satisfy the commercial payments needs of its customer base.
At the core of the company’s Corporate Payments product set is a virtual card, which its customers use to satisfy payment obligations in their business models. The company’s virtual payments capability is used for transactions where no physical card is presented, including transactions that are increasingly completed online in a digitally connected world, but can also be used over the telephone, by mail, by email, or by fax. Each transaction is assigned a unique VCN on either of the Mastercard or Visa networks, with a customized spend limit, expiration date, and various other purchase controls. These controls are in place to limit fraud and unauthorized spending. The unique VCN limits purchase amounts and tracks, settles, and reconciles purchases more easily, creating efficiencies and cost savings for its customers. The company’s virtual card solution combines wholly-owned, end-to-end highly reliable technology, global currency capabilities with over 20 currencies active, and a wholly-owned global compliance and funding mechanism that allows WEX to be the issuer in addition to the payment processor. The use of a commercial virtual card is particularly appealing for its ability to easily reconcile, protect against fraud, provide chargeback protections, have global currency capabilities, and generate rebates through interchange economics.
The company surrounds its core virtual card capabilities with a set of additional solution features to serve its customers. For the company’s embedded payments solution, these capabilities include: more than a dozen customized data fields that allow customers to tie together information, such as invoice numbers, booking numbers, or purchase orders that enable industry-leading automated reporting and reconciliation benefits, a wide variety of different virtual card products with each of the card associations to optimize card acceptance and interchange yield, bank transfer and check issuance capabilities, modern, RESTful API, with associated, developer-focused explanation of use, and the ability to optimize its systems and processes for bespoke solutions to large customer needs. For the company’s Direct to Corporate solution, these capabilities include: customizable integrations with different ERPs, enhanced AP data analysis and supplier enablement teams focused on increasing card acceptance, a wide variety of different virtual card products with each of the card associations to optimize card acceptance and interchange yield, bank transfer and check issuance capabilities allowing WEX to fulfill full AP file needs, and different user interfaces oriented toward more simple small business needs, as well as complex corporate needs.
The vast majority of the segment’s revenue is derived from net interchange revenue, which is the gross interchange created by the issuance, authorization, settlement, and clearing of card network spend less rebates paid to customers. For the company’s embedded payments offering used by leading technology companies across various industries, its net interchange rate is lower than that on its Direct to Corporate solution. A portion of revenue is derived from licensing fees it charges to partner financial institutions who white-label its Direct to Corporate solution. These financial institutions pay a technology fee as a percentage of the spend that the software enables them to issue.
Distribution
The company markets its Corporate Payments segment products and services both directly and indirectly to new and existing customers in a variety of models.
Within the company’s Embedded Payments solutions, it focuses on direct sales to leading companies in the travel, fintech, insurance, consumer bill pay, and media verticals. The company’s customers’ product set is largely focused on aggregating and managing large amounts of payments where a commercial payment solution is required.
Within the company’s Direct to Corporate solution, it focusses on both direct sales to businesses, as well as empowering financial institutions under white-label partnerships to serve their customers directly using its technology. The company’s direct sales team focuses on new sales directly to mid- and large- corporations where its custom ERP integration and supplier enablement functions help them turn their AP function from a highly manual and costly endeavor to a highly automated and revenue generating function.
Competition
WEX Corporate Payments competes with financial institutions that provide general payment services without the enhanced capabilities of its solution set. Financial institutions, including J.P. Morgan, Barclays, Capital One, American Express, and Citi, have access to technology solutions coupled with payment capabilities. The company competes against specialized financial technology firms that are focused on delivering processing capabilities to the marketplace, such as I2C, Global Payments, and Marqeta, in partnership with partner banks who provide payments services, such as Cross River Bank, Celtic Bank, MVB Bank, or Sutton Bank. It also competes with financial technology firms focused on accounts payable and spend management, such as Adyen, ConnexPay, and Stripe.
Regulation and Supervision
The company is subject to direct supervision and periodic examinations by various governmental agencies and industry self-regulatory organizations that are charged with overseeing the kinds of business activities in which it engages, including the Utah Department of Financial Institutions (UDFI), the Federal Deposit Insurance Corporation (FDIC), the Securities and Exchange Commission (SEC), and a number of state and foreign regulatory and licensing authorities.
As an industrial bank organized under the laws of the State of Utah that does not accept demand deposits that may be withdrawn by check or similar means, WEX Bank meets the criteria for exemption as an industrial bank from the definition of bank under the Bank Holding Company Act. As a result, WEX Inc. is generally not subject to the Bank Holding Company Act. WEX Bank is, however, subject to examination and supervision by the FDIC and the UDFI.
Sections 23A and 23B of the Federal Reserve Act (FRA) and the implementing regulations limit the extent to which the company can borrow or otherwise obtain credit from, or engage in, other covered transactions with WEX Bank. These rules also require that the company or any of its affiliates (as such term is defined in Section 23A of the FRA) engage in transactions with WEX Bank only on terms and under circumstances that are substantially the same, or at least as favorable to WEX Bank, as those prevailing at the time for comparable transactions with nonaffiliated companies.
The Consumer Financial Protection Bureau (CFPB) is also engaged in regulating the payments industry, including with respect to prepaid cards under Regulation E, which imposes requirements on general-use prepaid cards, store gift cards and electronic gift cards, which comprise a limited number of WEX products but could evolve with the business over time.
In addition, the Federal Trade Commission Act prohibits unfair or deceptive acts or practices in or affecting commerce for entities, including WEX Inc. and its subsidiaries that are not directly regulated by the CFPB.
On July 1, 2022, WEX Bank became subject to provisions in the Durbin Amendment to the Dodd-Frank Act, which provide that interchange fees that a card issuer or payment network receives or charges for debit transactions will be regulated by the Federal Reserve and must be reasonable and proportional to the cost incurred by the card issuer in authorizing, clearing and settling the transaction.
The company must verify the identity of customers, monitor and report unusual or suspicious account activity, as well as transactions involving amounts in excess of prescribed limits, and refrain from transacting with designated persons or in designated regions, in each case as required by the applicable laws and regulations (such as the Bank Secrecy Act and regulations of the United States Treasury Department and the Internal Revenue Service in the United States).
In addition to the applicable U.S. laws and regulations, the company is also subject to various international laws and regulations aimed at combating money-laundering and terrorism, including:
In Canada, Freezing Assets of Corrupt Foreign Officials Act, Justice for Victims of Corrupt Foreign Officials Act, Listed Terrorist Entities under the Criminal Code, Special Economic Measures Act, United Nations Act and their respective regulations;
In the EU, the Fourth and Fifth Anti-Money Laundering Directives (2015/849/EU) and (2018/843/EU), and the EU’s economic sanctions regime;
In the UK, Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (as amended by the Money Laundering and Transfer of Funds (Information) (Amendment) (EU Exit) Regulations 2019 (MLRs), section 21A Terrorism Act 2000, Proceeds of Crime Act 2002, Schedule 7 to the Counter-terrorism Act 2008, and various pieces of legislation that implement the UK’s financial sanctions regime, including HM Treasury Sanctions Notices and News Releases;
In Australia, the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024, the Anti-Money Laundering and Counter-Terrorism Financing Rules, Autonomous Sanctions Act 2011, the Australian Autonomous Sanctions Regulations 2011, the Charter of the United Nations Act 1945 (the United Nations Act) and its sets of regulations; and
In Singapore, the Corruption, Drug Trafficking and other Serious Crimes (Confiscation of Benefits) Act 1992, the Terrorism (Suppression of Financing) Act 2002 and various Monetary Authority of Singapore (MAS) regulations, notices, guidelines and guidance relating to sanctions and anti-money laundering.
The products that WEX Health’s software and payment solutions support are subject to various state and federal laws, including the Patient Protection and Affordable Care Act (the ACA) and the Health Care and Education Reconciliation Act (collectively referred to as Health Care Reform), and regulations promulgated by the Internal Revenue Service, the Department of Health and Human Services, the Department of Labor, and similar state laws and regulatory authorities.
Under the Financial Services Modernization Act of 1999, also referred to as the Gramm-Leach-Bliley Act (GLBA), and certain state laws, WEX Bank is required to maintain a comprehensive written information security program that includes administrative, technical and physical safeguards relating to consumer information.
For any consumer products or services provided by WEX Bank, the GLBA requires WEX Bank to provide initial and annual privacy notices to customers that describe its information sharing practices.
In addition to federal privacy laws with which the company must comply, numerous states also have adopted statutes, regulations and other measures, including California, Virginia, Colorado, Connecticut, Utah, Delaware, Florida, Iowa, Montana, Nebraska, New Hampshire, New Jersey, Oregon and Texas. Many of these state privacy laws include exceptions that may apply to WEX and WEX Bank, including for data regulated by federal law (e.g., HIPAA and HITECH or the GLBA) among other exceptions.
WEX and WEX Bank are also subject to certain international privacy and data protection laws. For example, in Europe and the United Kingdom, the General Data Protection Regulation (GDPR) and the UK GDPR apply to all companies processing data of EU/UK residents, regardless of the company’s location.
Additionally, the company is subject to other international and data protection laws in certain jurisdictions, including:
In Canada, the Personal Information Protection and Electronic Documents Act and provincial-level private sector privacy legislation enacted in Alberta, British Columbia, and Quebec;
In Australia, the Privacy Act (1988) and the Australian Privacy Principles; and
In Singapore, the Personal Data Protection Act 2012.
With respect to the company’s healthcare services, it has certain obligations under the Health Insurance Portability and Accountability Act of 1996 (HIPAA) and its implementing regulations, as amended by the Health Information Technology for Economic and Clinical Health Act (HITECH).
The company uses direct email marketing and text-messaging to reach out to current or potential customers and therefore are subject to various statutes, regulations, and rulings, including the Telephone Consumer Protection Act and related Federal Communication Commission orders, the Controlling the Assault of Non-Solicited Pornography and Marketing Act, as well as similar international legislation, such as Canada’s Anti-Spam Legislation, which regulates the sending of commercial electronic messages.
The company’s European operations are subject to laws and regulations governing payment services, including under the Payment Services Directive (EU 2015/2366 PSD2) and the Electronic Money Directive (2009/110/EC EMD2).
Optal Financial Europe Limited (OFEL) is an Irish authorized electronic money institution, authorized under the European Communities (Electronic Money) Regulations 2011, as amended (which implements EMD2).
WEX’s operations in the United Kingdom are also subject to applicable laws and regulations governing payment services. Optal Financial Limited (OFL) is authorized as an electronic money institution under, and must comply with, the Electronic Money Regulations 2011 (EMRs) and the Payment Services Regulations 2017 (PSRs). It is supervised by the Financial Conduct Authority (FCA) and is subject to the FCAs Principles for Business.
In addition to the PSRs, the EMRs, and the various anti-financial crime regulations, OFL must also comply with the UK sanctions regime which imposes serious and extensive restrictions on dealing with designated persons or entities.
WEX Finance Inc. and Optal Singapore Pte Ltd are licensed to carry on the business of issuing credit cards and/or charge cards and must comply with the Banking Act 1970, the applicable sections of the Payment Services Act 2019 (PSA) and various MAS regulations, notices, guidelines and guidance.
eNett International (Singapore) Pte Ltd holds an Australian Financial Services License (AFSL) which authorizes it to deal in non-cash payment products in relation to wholesale customers. It is supervised by the Australian Securities & Investments Commission and must comply with the Corporations Act 2001 (Cth) and the Corporations Regulations 2001 (Cth). Optal Australia Pty Ltd holds an intermediary authorization under eNett International (Singapore) Pte. Ltd’s AFSL. Any material failure by it to comply with the rules and regulations to which AFSL holders are subject could result with the company incurring sanctions up to and, including suspension or relinquishment of its license. WEX entities providing payment services to Australian customers must also comply with the Payment Systems (Regulation) Act 1998.
WEX Finance Inc., WEX Australia Pty Ltd, WEX Fuel Cards Australia Ltd and WEX Prepaid Cards Australia Pty Ltd operate within a framework of regulatory relief and exemptions afforded them on the basis that they satisfy the requisite conditions. WEX Australia Pty Ltd is an authorised representative of a third party AFSL holder and is authorised by such third party to provide general financial product advice and to deal in financial products in relation to retail and wholesale customers.
The company’s Canadian business is subject to the recently issued Retail Payment Activities Act, which requires registration of its operations and its ongoing compliance with risk management, funds safeguarding, recordkeeping, and reporting regulations.
WEX is a global business and is required to comply with anti-bribery and corruption laws in the jurisdictions it operates within, including but not limited to, the U.S. Foreign Corrupt Practices Act (FCPA), UK Bribery Act 2010 (UKBA), the Irish Criminal Justice (Corruption Offences) Act 2018, the Canadian Criminal Code and Corruption of Foreign Public Officials Act and the Singapore Prevention of Corruption Act 1960.
As a U.S. Internal Revenue Service approved passive non-bank custodian for Health Savings Accounts (HSAs), WEX Inc. is subject to the provisions of Treasury Regulations Section 1.408-2(e) (the Treasury Regulations), including the net worth, surety bond, recordkeeping, audit, and administration of fiduciary duties requirements, among other requirements.
History
The company was founded in 1983 as a Maine corporation. It was incorporated in 2004. The company was formerly known as Wright Express Corporation and changed its name to WEX Inc. in 2012.
