Functioning of the processing of payment transactions via routing partners using the example of Al Alam Solutions FZ LLC

Following we describe the functioning of the processing of payment transactions via routing partners using the example of Al Alam Solutions FZ LLC:

- Wirecard’s customers can access a large number of financial, risk management and payment transaction services via Wirecard's platform. These services are provided partly directly by Wirecard and partly by partners such as Al Alam Solutions FZ LLC, which are connected to the Wirecard platform in the background.

- Al Alam Solutions FZ LLC is a company with headquarters in Dubai and affiliated companies in Asia and Europe that provide i.a. technical services in the area of payment processing.

- Al Alam maintains an international network of partner relationships with payment processors and acquirers, which Al Alam has integrated into its technical platform.

- Wirecard’s platform uses an interface provided by Al Alam in the backend and thus gains technical access to the payment and acquiring companies integrated with Al Alam.

- Wirecard currently uses a technical connection to 9 acceptance partners in different geographical regions via Al Alam. This enables Wirecard to offer its customers local payment acceptance via these partner companies.

- In fiscal years 2016 and 2017, over 1,000 primarily smaller merchants connected to Wirecard via marketplaces and PSPs were processed in the backend via the interfaces provided by Al Alam.

- The business processed via Al Alam’s interfaces is the result of Wirecard's sales activities. Merchants are directly connected to the Wirecard platform.

- Al Alam does not refer any business to Wirecard and therefore does not contribute to Wirecard's sales or profits.

- The business model with partnering acquirers stipulates that Wirecard is responsible for risk management and ultimately bears the entire default risk (chargebacks). In this way, Wirecard is providing a significant part of the value chain.

- Merchants deposit a rolling security reserve with their acquiring partner, which is not reflected in Wirecard's balance sheet (see Annual Report 2018, page 169, 3.7, 2nd paragraph).

- Wirecard is liable only in the event that this security collateral is not sufficient – however, not with its own equity capital, as is the case with its own licenses, but through guarantees and, among other things, security deposits held in trust accounts (see Annual Report 2018, page 197, 2nd paragraph).

- The security deposits are held in trust accounts with reputable commercial banks in order to distinguish the corresponding funds from the current volume.

- Money from the acquiring business, which Wirecard cannot dispose of at short notice, is reported under trade receivables and other receivables. If Wirecard has these funds at its disposal at short notice, they are reported under cash and cash equivalents in accordance with IAS 7 (see Annual Report 2018, page 142, 5. paragraph).

- All sales and volumes were correctly reported and accounted for. The corresponding merchant relationships and sales postings were examined several times. All accounting entries are in accordance with IFRS and were reviewed as part of the audit of the annual financial statements.


Investor Relations
Tel.: +49 (0) 89 4424 1788
ISIN DE0007472060
Reuters: WDI.GDE
Bloomberg: WDI GY

About Wirecard:

Wirecard (GER:WDI) is one of the world’s fastest growing digital platforms in the area of financial commerce.
We provide both business customers and consumers with a constantly expanding ecosystem of real-time
value-added services built around innovative digital payments by using an integrated B2B2C approach. This
ecosystem concentrates on the areas payment & risk, retail & transaction banking, loyalty & couponing, data
analytics & conversion rate enhancement in all sales channels (online, mobile, ePOS). Wirecard operates
regulated financial institutions in several key markets and holds issuing and acquiring licenses from all major
payment and card networks. Wirecard AG is listed on the Frankfurt Stock Exchange (DAX and TecDAX, ISIN
DE0007472060). Visit us on, follow us on Twitter @wirecard and on Facebook

Find out more about Wirecard

The future of financial commerce starts here

About us