Shares of French payment processing giant Worldline tumbled by more than 20% on Tuesday after a French media report alleged the company failed to prevent fraudulent transactions through its systems.

According to an investigation published by Mediapart, Worldline reportedly allowed transactions linked to suspicious activities for years without adequate monitoring, raising concerns over compliance with anti-money laundering regulations.

Regulatory and Investor Pressure Mounts

The report prompted an immediate selloff on the Paris stock exchange, wiping out hundreds of millions of euros in market capitalization. Analysts say the incident could trigger regulatory probes and seriously damage the company’s reputation in the highly regulated European payments sector.

“These allegations, if confirmed, could lead to significant penalties and loss of institutional trust,” said one financial compliance expert.

Company Response and Ongoing Developments

Worldline issued a brief statement saying it “firmly denies any wrongdoing” and is reviewing the allegations. The company also said it adheres to all required legal frameworks and continuously updates its fraud detection mechanisms.

Meanwhile, market regulators and French financial authorities have not yet commented publicly, but are expected to issue statements in the coming days.