Integrated systems

Rüdiger Trautmann, Wirecard Group, explains how the company’s integrated systems are paying off for FSIs.

FST. How would you describe the company’s business model?
RT. To cut a long story short, the Wirecard combines electronic real-time payment methods with integrated risk management services and communication solutions. The company’s portfolio ranges from standard electronic payment systems to industry-specific enterprise solutions to outsource the full financial supply chain.

FST. And what are the key competences of the company?
RT. The Wire Card Payment Solution provides companies with 85 local and global payment and risk management methods in 120 currencies, via credit card and direct debit processing services – so-called classical payment methods. Besides, we established a very powerful internet-based payment system: CLICK2PAY, to answer the market demands for an alternative payment-solution. In addition to internet payment processing, all other distribution channels such as call centres and point of sale are capable of incorporation.

FST. Wirecard recently hit the headlines with the acquisition of the XCOM Bank. In what state of development is that acquisition right now?
RT. Studies by the Federal Supervisory Authority for Financial Services and the so-called ‘Prüfungsverband deutscher Banken e.V’ – an auditing association of German banks, resulted in no objections. This means that the XCOM Bank is now called Wirecard Bank.

FST. And what is the Wirecard Bank all about?
RT. It enables us to extend our service portfolio by the capabilities of a full bank licence. This is a major step in realising our strategic vision to become the leading European full service provider for real-time payment solutions.

FST. Can you describe that strategic vision in a little more depth?
RT. Wirecard is one of the few independent European players to hold a universal bank licence and this will enable us to increase our competitive advantage. This acquisition as well as the coverage of the new business area will significantly improve our gross margin, and consequently our profitability over the medium and long term. However, the most decisive benefit is that we can offer our customers an added value at every level and for every product dimension.

FST. When it comes to having a full bank licence, what kind of products can we expect then in the near future?
RT. The Wirecard Bank will concentrate on issuing innovative card products. The main emphasis is placed on the real-time ePayment market sector: Wirecard Bank will develop new virtual and prepaid credit card solutions for the online business market. Furthermore, we will be able to provide solutions that are as flexible as possible and tailormade to meet the individual requirements of the customer.

New products will be launched soon, which will combine established payment solutions of the Wirecard Group with classic bank features. In connection with this, the integration of credit balances for the accounts of the eWallet-Solution CLICK2PAY is conceivable. Meanwhile, on the B2B-level, the merchant accounts will benefit from the new business opportunities that a full bank licence is offering.

FST. Has this development had any emphasis on your established strategic partnerships with large processing banks?
RT. The Wirecard Group will continue to position itself as an independent provider in the areas of payment transactions and credit card processing. Parallel to the development of in-house solutions, there will also be a specific expansion of the existing strategic partnerships with the processing banks and especially the credit card acquirers. By focusing on customer benefits, Wirecard plans to maintain its strategy to provide a solution that is tailormade and as flexible as possible to exceed the expectations of its customers.