A payer that gets the equivalent of 5% of Deutsche Bank’s revenue is now worth more than the German bank, which is considered by regulators to be one of the most important in the world.
Wirecard, which is based in Ascheim on the outskirts of Munich, has surpassed Germany’s largest bank at market value, taking advantage of the wave of investor enthusiasm by the payment companies. The stock, which rose more than 84% this year, should enter the DAX, the country’s benchmark index in September, possibly in place of Commerzbank.
Wirecard’s growth reflects the success of Adyen, a Europe-based payment start-up whose shares have more than doubled since its debut in June. Payment companies are popular among investors for being able to profit from the rapid global growth of online commerce and the use of mobile devices for banking services – without having to bear the costs of offering and managing long-term credit to the economy.
Wirecard, which has a market value of around 21.1 billion euros, provides software and systems for online payments and fraud prevention.
The company’s 19-year revenue is expected to grow to around € 2.5 billion by the end of 2019, from € 1.5 billion last year. By contrast, Deutsche Bank revenue has fallen more than 10 percent over the past three years and CEO Christian Sewing has announced more cuts this year, leaving analysts skeptical of its growth capacity.