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Payments NewsInside Wirecard, a Deposit-Taking Bank Helped Fuel Growth

“Before its dramatic fall from grace last week, Wirecard AG counted on a small banking unit just outside of Munich to help drive stellar growth in its main payments business. Now Wirecard Bank AG, which attracts deposits by offering customers market-leading interest rates, is at the center of attention as clients ask if they’ll get their money back, regulators watch warily for fallout in the financial system and investors worry whether the parent company has any kind of future. The unit has a full German banking license, meaning it can accept deposits and grant loans as well as facilitate the electronic payments that Wirecard is better known for. But it’s at the heart of the company because of its relationship with credit card companies Visa Inc. , Mastercard Inc. and JCB International, which are key to the firm as a whole staying in business.”

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