How German Fintech Darling Wirecard Fell From Grace 

Until June, German payments company Wirecard AG was a hot growth story that had shaken off allegations of accounting fraud. Then came the admission that about $2 billion of company funds had gone missing. The scandal led to the resignation and arrest of the company’s former Chief Executive Officer Markus Braun, with the company filing for court protection from creditors. More executives, banking officials, auditors and even regulators may become ensnared as the broad impact of Wirecard’s potential demise rattles Germany’s financial industry.

Wirecard is a developer of software and systems for online payments and fraud protection used across the internet, processing a customer’s card details and ensuring the funds to cover a purchase are transferred to the merchant. Its technology helps handle smartphone payment transactions, issue credit cards and detect suspicious activity. Through the aggressive acquisition of at least 18 companies, Wirecard outgrew Munich’s start-up scene to report 2.1 billion euros ($2.4 billion) in revenue in 2018. That year, Wirecard replaced Commerzbank AG in Germany’s 30-company DAX stock index, alongside titans such as Volkswagen AG, Siemens AG, and Deutsche Bank AG.