What is Wirecard’s business model, and what are its key strengths? Do you have any concerns about Wirecard’s strategy?

Wirecard was initiated in 1999 and instantly started as a payment-processing board aiding internet sites in gathering credit card disbursements from clients. Reasonably, it was for the future technology to transform the old ways of making transactions that were considered to be analog and waste a lot of time. Everything in the current world is run by technology. Since every entity is run by technology, it is logical to say that even money transactions should be done digitally, thus the main aim of Wirecard Company.

The firm was qualified again in 2002 to course disbursements for several web-based betting thresholds and full-grown amusement websites. Markus Brown’s ambition was to create the technology to enable cashless payments to benefit businesses and consumers. Wirecard launched a Visa and MasterCard credit card business in 2005, followed by strategic collaborations with American Express, Apple Pay, Alipay, Discover, China Union Pay, JCB, and WeChat Pay in the e-payments environment.

Concerning the introduction of online transactions via the opening of Visa and MasterCard, Wirecard Company had a dedicated tactic of increasing and safeguarding virtual disbursements. Fortunately, global e-commerce has seen the company yield more profits even though its worth has been questioned over the years. Wirecard maintained its evolution as a full-service payment business after acquiring XCOM in 2006, focusing on online and contactless payments and disrupting the burgeoning e-payments industry.

Wirecard’s Key Strengths

Unique Global License Framework

Wirecard’s platform services are entirely offered in more than 100 countries globally. With the combination of many risk management involved all over the market places and the global license and the payment solutions, the Wirecard Company can withstand. Similarly, it can withstand an average of 8% advanced conversion rates to manage e-commerce businesses globally.

Since it owns its license in almost 33 countries, it is significantly easier to manage the risks that are encountered in the business industry. For instance, the full banking license will always allow the Wirecard companies across the 33 countries to carry out their business well without any interruptions from the government. The ownership of many licenses by Wirecard Company enables the company to strengthen its position while providing extensive offerings to clients.

Partnerships with many Significant Brands

Wirecard Company has maintained a high profile in creating friendships with other customers and holding them for an extended period. Several strong brands such as Qatar Airways, Aston Villa, Allianz Prime, Visa, and many more have gained recognition through Wirecard Company. Reasonably, this helps share ideas and knowledge on how they can do and expand into more businesses.

Sensibly, through their clients who use Visa cards to make transactions online, these brands will give their feedback, and this feedback will be shared. Upon sharing the feedback, whether it is negative or positive, the negative feedback will be addressed so that they can maintain their customers and improve trust issues.

My concern with Wirecard’s strategy is whether it will finally reach out to more countries globally despite reaching out to 100 countries. Reasonably, my concern is to make sure that there is equity in reaching out to many countries. Secondly, my other problem is whether, if other companies of the same business type emerge, they will be their reactions, such as reducing the transaction costs to maintain the confidence of their customers.

Lastly, my concern is whether the company will withstand the pressure since it has been declared a fraudster entity that only focuses on fabricating its customers. Reasonably, their next move will be to restore the customers’ trust and do a legit business.

Answer by Academic.tip's expert
An answer to this question is provided by one of our experts who specializes in business & economics. Let us know how much you liked it and give it a rating.

Cite this page

Select a citation style:

References

Academic.Tips. (2023) 'What is Wirecard’s business model, and what are its key strengths? Do you have any concerns about Wirecard’s strategy'. 14 March.

Reference

Academic.Tips. (2023, March 14). What is Wirecard’s business model, and what are its key strengths? Do you have any concerns about Wirecard’s strategy? https://academic.tips/question/what-is-wirecards-business-model-and-what-are-its-key-strengths-do-you-have-any-concerns-about-wirecards-strategy/

References

Academic.Tips. 2023. "What is Wirecard’s business model, and what are its key strengths? Do you have any concerns about Wirecard’s strategy?" March 14, 2023. https://academic.tips/question/what-is-wirecards-business-model-and-what-are-its-key-strengths-do-you-have-any-concerns-about-wirecards-strategy/.

1. Academic.Tips. "What is Wirecard’s business model, and what are its key strengths? Do you have any concerns about Wirecard’s strategy?" March 14, 2023. https://academic.tips/question/what-is-wirecards-business-model-and-what-are-its-key-strengths-do-you-have-any-concerns-about-wirecards-strategy/.


Bibliography


Academic.Tips. "What is Wirecard’s business model, and what are its key strengths? Do you have any concerns about Wirecard’s strategy?" March 14, 2023. https://academic.tips/question/what-is-wirecards-business-model-and-what-are-its-key-strengths-do-you-have-any-concerns-about-wirecards-strategy/.

Work Cited

"What is Wirecard’s business model, and what are its key strengths? Do you have any concerns about Wirecard’s strategy?" Academic.Tips, 14 Mar. 2023, academic.tips/question/what-is-wirecards-business-model-and-what-are-its-key-strengths-do-you-have-any-concerns-about-wirecards-strategy/.

Copy