What is European Alipay Wirecard? European Alipay Wirecard Review

About Wirecard

In November 2006, Wirecard launched an Internet payment service called "Wirecard". Users open an account by registering a Wirecard account online. Users use Wirecard services to conduct cash, card, direct debit, wire transfer or various local payment activities. The company's electronic payment processing and risk management platform supports more than 85 local and international payment and fraud protection schemes. The company is a member of ADP CardClear and the International Air Transport Association.

Wirecard fraud incident

Wirecard said in a statement last Thursday that external auditor Ernst & Young "could not verify" 1.9 billion euros ($2.1 billion) in cash that the company was supposed to have deposited in Asian banks. The funds account for about a quarter of Wirecard's total balance sheet. Reports said there were signs that Wirecard's trustees made false confirmations of the balances to deceive auditors.

P Card Statement

German payment giant Wirecard issued a statement saying that the company admitted that there was no money in the account, former CEO Marcus Brown was detained, and Wirecard announced that it had filed for bankruptcy. The company's stock fell 75% during the trial. Wirecard's bankruptcy also implicated several payment companies including Payoneer.

Payoneer's Euro Collection Account service is launched in cooperation with Wirecard's independent subsidiary, Wirecard Bank AG. Wirecard Bank AG is a compliant subsidiary of the Wirecard AG Group with complete licenses and is supervised by the German Federal Financial Supervisory Authority (Bafin). Wirecard Bank AG was explicitly excluded from the bankruptcy application process of Wirecard AG, and BaFin also appointed a special representative to supervise its daily operations. The banking services provided by Wirecard Bank AG are currently normal and will not be affected in the future and can continue to be used.

Subsequent Statement

Development History

In November 2006, Wirecard launched an Internet payment service called "Wirecard".

In 2013, the company had revenues of EUR 481.74 million and had 1,025 employees.

In December 2015, Wirecard reached an agreement with Alipay to provide mobile payment services to Chinese travelers traveling to Europe.

In June 2016, Wirecard AG was in talks with representatives of Alipay, which could potentially acquire up to 25% of Wirecard’s shares.

In 2018, its revenue exceeded 2 billion euros, and its market value once reached 24.6 billion euros, equivalent to 195.1 billion yuan. It is regarded as the Alipay of Europe.

Related events

On Monday, June 22, 2020, German payment giant Wirecard said that the 1.9 billion euros (about 2.1 billion U.S. dollars) missing from its accounts may not exist at all. The company is considering selling or closing some businesses to avoid capital shortages. According to foreign media reports, Wirecard CEO Markus Braun, who has been at the helm for 18 years, resigned on June 19 (last Friday) and was replaced by James Freis, a former compliance officer of the German Stock Exchange. On June 22, the Munich District Court issued an arrest warrant for Braun, who was restricted from leaving the EU after paying a 5 million euro bail.

On August 28, 2020, Germany's Handelsblatt reported that according to a report issued by the bankruptcy administrator, Wirecard, a Munich-based payment service provider, had only 26 million euros in freely available bank account funds, while its liabilities amounted to 3.2 billion euros, with a liquidity gap of 99%.

References

• 1. Wirecard: Baidu Encyclopedia
• 2. Fraudulently making $2.1 billion, CEO resigned, what happened to Wirecard, the copycat of Luckin Coffee? : Sina Finance [cited on 2020-06-19T16:00:00.000Z]
• 3. A 96% plunge, 100 billion market value gone, "European Alipay" Wirecard filed for bankruptcy after fraud: Fast Technology [cited on 2020-06-21T16:00:00.000Z]