Wirecard AG was a German payment processor and financial services company. The company was founded in 1999. It nearly went bankrupt in 2002, but Markus Braun injected capital and became the CEO. He restructured the company and shifted its business model to focus on providing internet payment service to many industries including the adult entertainment industry.
Services:
eCommerce
Mobile pay
Digital
International
Wirecard was an international company that provides payment and risk management services. Wirecard is a popular and widely used payment platform for companies to use in their online, mobile and offline transactions. They helped businesses with many aspects of payment. Wirecard was a popular and widely used payment platform for companies to use in their online, mobile and offline transactions.
Wirecard had years of success and made it seem like a steady growth company. But the steadiness was but a dream as auditors realized that they were net $2,000,000,000 in debt based off of the Wirecard accounting. The realization that Wirecard had been falsifying the reports to shareholders. CEO Markus Braun was taken in to custody and Wirecard shut its operations shortly after.
Investors had to rely on adjusted versions of the company’s financial statements to compare Wirecard with other companies due to the company’s subsidiaries: one that does banking and one that does primarily payment processing. The “adjusted” accounts (which are not reported in accordance to International Financial Reporting Standards) resulted in inflated earnings and cash flow figures.
From Wirecard AG’s highest share price of high $225’s, the share price fell to an absolute 0.
A 100% loss.
