Businessmodel of Worldpay

Customer Segments

Worldpay has a niche market business model, with a specialized customer segment. The company targets its offerings at multichannel retailers, primarily small business merchants.

Value Proposition

Worldpay offers three primary value propositions: accessibility, performance, and brand/status.

The company creates accessibility by providing a wide variety of options. It has acquired several firms since its founding, including Envoy (a provider of alternative payment methods), Yespay (a provider of point-of-sale technologies), Century Payments (a provider of advanced sales tools and analytics), Cobre Bem Tecnologia (a payment gateway firm), Pazien (a payment strategy solution), and SecureNet (a provider of omni-channel technology). This strategy has enabled it to significantly expand its capabilities and diversify its portfolio.

The company demonstrates strong performance through tangible results. For example, pub chain Jolly Carter used its solutions, resulting in a 10% increase in annual sales and significant time savings.

The company has established a strong brand due to its success. It claims to be the United Kingdom’s largest payment processor, processing 42% of all transactions. It serves more than 400,000 merchants in 126 currencies across 146 countries, accepting over 300 different payment methods. On an average day it processes more than 31 million in-store, online, and mobile transactions (approximately 400 a second). Its solutions are delivered by more than 5,500 employees in 25 offices in 11 countries worldwide. Lastly, it has won a number of honors, including recognition as “Best Retailer Achievement in Payments” and as having the “Best Benefits or Loyalty Program of the Year” at the 2016 Card & Payments Awards.

Channels

Worldpay’s main channel is its business development team. The company promotes its offerings through its website, social media pages, and participation in expos and conferences.

Customer Relationships

Worldpay’s customer relationship is primarily of a self-service nature. Customers utilize its products while having limited interaction with employees. The company’s website features an “Insight Hub” with articles, reports, and case studies. The site also provides answers to common questions. That said, there is a personal assistance component in the form of phone, e-mail, and live chat support.

Key Activities

Worldpay’s business model entails designing and developing its products for customers.

Key Partners

Worldpay maintains the following types of partnerships:

• Integration Partners – Firms that integrate Worldpay’s solutions into their platforms in order grow their business and extend its reach to their customers.
• Resellers – Firms that sell Worldpay’s solutions in order to extend its reach.
• Referral Partners – Firms that refer their customers to Worldpay in exchange for a commission. Worldpay’s high profile partners include Oracle, Salesforce, and SAP.

Key Resources

Worldpay’s main resources are its human resources, who include the engineers that design and develop its software, the business development employees that promote it, and the customer service employees that provide support.

Cost Structure

Worldpay has a cost-driven structure, aiming to minimize expenses through significant automation. Its biggest cost driver is likely sales/marketing, a fixed cost. Other major drivers are in the areas of customer support/operations and administration, both fixed costs.

Revenue Streams

Worldpay has one revenue stream: revenues it generates from the sale of its software products to customers.