- June 26, 2020
- Posted by: Monika
- Category: Articles
As COVID-19 worsens financial crisis in Europe, Wirecard, a global FinTech company based in Germany filed for insolvency after losing over $12 billion in market value after EY audit reports showed insufficient evidence of $2 billion in profit earned over a decade.
Wirecard, a German payment processor and financial services provider, with over 20 years of industry experience, provides software to retailers, consumers and the financial system. This gaping hole in their balance sheet is probably because of their history of being accused for the money never existing in the first place, money laundering, and “facilitating online gambling by US citizens.” To make matters worse, Visa and MasterCard are considering severing ties with Wirecard. Both companies are monitoring the situation closely and should they proceed with severing ties, the company will have “no business” according to Mirabaud analyst Neil Campling.