Unknown firm overtakes Deutsche Bank
August 15, 2018
A Bavarian payment processing company overtook Deutsche Bank on Tuesday to become Germany's most valuable financial services provider.
Wirecard shares, part of the Tec-Dax index, were worth more than €21 billion ($24 billion), beating Deutsche Bank's €20 billion market valuation.
In the past year, the share price has risen by 150 percent from €68 in August 2017 to €170 this month.
It is now the fourth most valuable company in the financial sector after Allianz, Munich Re and Deutsche Börse.
In September Wirecard is expected to join the DAX Index, the top tier of Germany's publicly traded companies, likely replacing Commerzbank.
Processing payments
Wirecard makes its money by processing credit card payments for online retailers, guaranteeing payment and assuming risk for a small fee.
It also issues credit cards, facilitates smart phone payments and cooperates with Asian services such as Alipay and WeChat.
Read more: Troubled Deutsche Bank pushes ahead with restructuring
New deal pushes price up
The stock price has had a chequered history after allegations of balance sheet discrepancies, but its stock price has surged after taking on major clients.
The most recent push came from a cooperation with the Heinemann brothers, the Hamburg duty free wholesale and retail company.
Read more: Fintech minnows swim with banking whales
aw/jm (dpa)