Wirecard's Collapse Touches Adult Sector

Wirecard's Collapse Touches Adult Sector

BERLIN — A major financial sector crisis surrounding the implosion of German e-commerce bank Wirecard has affected some adult industry merchants, mainly in Europe, according to sources in the payment processing sector.

Wirecard, as Forbes reported today, “collapsed yesterday with debts of almost $4 billion, after the company admitted that around $2 billion of cash on its books didn’t actually exist.”

The solidity of Wirecard, started in 1999 and with a long history in processing payments for adult businesses, had been questioned by investors surrounding a series of reports by the Financial Times regarding their business practices and accounting.

Wirecard describes itself as “a fully integrated, digital financial commerce platform.” It is part of the fintech sector.

This week Wirecard’s CEO and CTO Markus Braun resigned and was arrested over the missing $2 billion.

Wirecard and Adult Sector Merchants

In the adult sector, a source explained to XBIZ, merchants typically received two kinds of services from Wirecard: the e-bank would set up payment processing and perform Visa/Mastercard transactions; or help set up a European bank account for funds settlement.

Several merchants, mostly in Europe, had bank accounts through Wirecard.

These two areas, the source added, are where merchants are getting impacted by Wirecard’s collapse.

Both merchants and payment processors are keeping an eye on the development of the Wirecard collapse, particularly on the German authorities and courts' decisions regarding the next steps in deciding the status of the bank.

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Adult Industry Educational, Networking Platform 'Imperfectly You' Launches

Imperfectly You, an educational and networking platform for adult industry workers, has officially launched.

Segpay to Launch News Network for High-Risk Merchants

Segpay has announced that it will launch the Segpay News Network (SNN) on April 15.

Age Verification Watch: Patching the Holes

This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Pineapple Support to Host Autism Spectrum Support Group

Pineapple Support is hosting a free online support group for performers and creators who are, or suspect they may be, on the autism spectrum.

ImLive Launches Revamped Member Loyalty Program

Cam platform ImLive has revamped its member loyalty program.

GoFundMe Set Up for Danny Ferretti's Medical Expenses

A GoFundMe campaign has been set up for Fangear founder Danny Ferretti, who requires extensive lung surgery.

Byborg Acquires Cuties AI

Byborg Enterprises has acquired adult artificial intelligence startup Cuties AI.

Irish Government Releases Report on Sex Work Decriminalization Legislation

The Irish government has released a report reviewing a 2017 law that decriminalized sex work across the country.

Texas Bill Would Require Age Verification for Online Sex Toy Sales

A new bill in the Texas state legislature would require online retailers to implement age verification of purchasers before selling “obscene devices” to anyone in that state.

New York Assemblyman Proposes Banning the Term 'Sex Work'

Republican New York Assembly Member Brian Maher has introduced a bill to prohibit the use of the term "sex work" in government documents.

Show More