Lionel Laurent, Columnist

Paradise Papers Make Queasy Reading for Fintech Fans

While Wirecard denies doing anything illegal, its shares are vulnerable to slower growth and any possible increase in regulatory scrutiny.

November 8, 2017 at 12:10 PM UTC

By Lionel Laurent

Lionel Laurent is a Bloomberg Opinion columnist writing about the future of money and the future of Europe. Previously, he was a reporter for Reuters and Forbes.

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The Paradise Papers tax leaks point the finger at several multinationals, like Apple Inc. and Nike Inc., arguing that they don't pay their fair share. The companies insist they're fully compliant with the law. Despite fist-pounding from politicians and regulators, investors barely blink. Shares remain unmoved.

Things have been a bit different for a stock-market fintech favorite, Wirecard AG. Shares of the German payments and banking services provider, whose clients include Orange SA and Carrefour SA, are down 4 percent after a name-check by newspaper Sueddeutsche Zeitung in its Paradise Papers coverage. The report connects Wirecard to transfers for gambling providers that are allegedly illegal. Wirecard's response is that its business with online casinos is "100 percent" legal.