I have to admit that to me it looks like mainly @city_tom has understood the seriousness of the situation we see unfolding in relation to Wirecard. Wirecard isn’t irreplacable and thankfully we aren’t talking about lost billions from one or a few creditors, but a multitude of banks, which means the financial risks are spread across a broader spectrum of financial institutions outside Wirecard. There’s indeed no need for anyone, except the creditors, to save the assets at risk.
As for Wirecard, it’s not the first payment processing related business that has some shady and questionable workings. One has to only back to the 2000s and look at PayPal and their practices back then. It’s not really like it was without doubt PayPal would survive their bad business practices. In this case we’re talking about substantial losses and even criminal proceedings are likely, just like with Enron. I second the motion it’s hard to see Wirecard survining.
In terms of Wirecard quite possibly going down the drain as it currently is, it’s also an opportunity for a company like Curve, because there’s far fewer card issuers among the new type of paycard companies and many rely on Wirecard (like e.g. a multitude of Bitcoin related cards) and thus Wirecard ceasing to exist would beyond the immediate short term in fact narrow down the competition of Curve or at least be a hindrance for those competing without being able to issue their own cards.
Now as for this uninformed notion of it being better to not engage with your whole customer base and rather hide away the Wirecard issue in a forum for the most savvy customers, I seriously can’t see how that rationale would have any merit. It’s absolutely a disaster, would for some reason Curve cards or new applications stop working even for a day or a few, and you’ve not recognised in public the perilous situation at hand. That would be the PR disaster I was already previously talking about - failing to being proactive and open, especially when the issue isn’t even in-house. It’s not being alarmist. It’s being a realist and customer service minded.
I agree fully with it being a good move to start issuing your own cards and that’s part of the path to seeing a profitable company. The only risk really is that at the moment all cards out there are Wirecard issued, so any possible issues that may arise with the cards working or being able to issue new ones - even if it would be a very temporary inconvenience for a day or so, are critical for the Curve customer satisfaction and could result in lost business. So it’s paramount that things really work out in a way that’s smooth for Curve customers and investors. This is why the company needs to reach out to the customers and relay the message of being in control of the situation. If the situation turns sour even for a day or so, a lot of grumpy voices would be heard as people ask then “Why didn’t you tell us when you knew about this?”