The business model of the fintech giant Wirecard is lucrative. The provider issues prepaid credit cards on behalf of well-known banks, supermarkets or other providers.
Customers deposit money on these cards and can then use them like normal credit cards. The advantage for consumers is that they can only spend as much money as is ultimately deposited on the card.
Wirecard earns money with its prepaid cards. On the one hand, the Munich company takes over the payment processing for the banks, trustees or financial companies and takes care of the technical details. Wirecard receives money for every use of the card. In the EU, for example, the price for using credit cards is 0.3 percent and for using EC cards it is 0.2 percent of the payment amount.
Wirecard also earns money from retailers. You also have to pay money for handling and service. Wirecard usually chases the money through the Visa and Mastercard networks, which act as trustees. Wirecard does not have its own payment network. Traders usually pass the costs on to consumers. They are between five and 12 percent of the purchase price.
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