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What is Worldpay and how it

functions?
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Contents
1. Introduction - Why start an internet business?...................................................................2
2. WorldPay - Key facts about company.................................................................................2
3. History and onership........................................................................................................2
!. "c#uisitions and partnerships.............................................................................................3
$. Wor%in& conditions.............................................................................................................3
'. (ocations and softare de)elopment centres.....................................................................3
*. Products and ser)ices..........................................................................................................!
+. Website................................................................................................................................$
,. WorldPay and PayPal - ho it functions............................................................................$
10. .inancial success.............................................................................................................'
11. /onclusion.......................................................................................................................+
12. (iterature.........................................................................................................................+
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1. Introduction - Why start an internet business?
0oadays it is hard to ima&ine life ithout technolo&y. Internet has chan&ed the ay of life
functionin& across the &lobe includin& business culture and communication. 1any people
ha)e problem of findin& a 2ob. 3ne of the easiest and fastest ays to start up personal
business is 4-business. 5here is enormous number of ad)anta&es that internet business
pro)ides and in this /ase 6tudy e ill focus on the most important ones for us7
Customer base: Internet spendin& is predicted to account for !08 of all retail sales by
20209 +!8 of the orld:s internet users no shop online
Profitable: 5he internet is the ideal place for small or start-up businesses to &ro9
ith no need to compete on hi&h street premises or corporate offices hich helps to
ma%e it profitable; ,08 of online small and medium enterprises <614= found the
internet a profitable place to trade.
With an internet based business you can work from anywhere and anytime.
2. WorldPay - Key facts about company
WorldPay operates in more than !0 countries ith 120 transaction currencies and 1!
settlement currencies.
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5hey pioneered online payments for 614s and process millions of
online payments e)ery day. .rom face-to-face transactions to online and phone transactions9
they pro)ide an effecti)e9 secure ser)ice.
2
5he business has 3 main operatin& business units7
1. Streamline: >K mar%et leadin& multi channel merchant ac#uirer and processor.
2. eCommerce: Pro)ider of &lobal internet payments solutions supportin& payment to
customers in 120 currencies9 offerin& the idest selection of potential electronic
payment types in the &lobal mar%et.
3. WorldPay US: >6 multi channel merchant ac#uirer and processor.
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3. History and onership
In 1,,! WorldPay pro)ided Internet payment ser)ices for the first time becomin& one of the
first orld pro)iders e)er. .irstly9 it as pri)ately oned9 but in 2002 ?oyal @an% of
6cotland ac#uired it and renamed business into ?@6 WorldPay. 5his ac#uirin& enabled
si&nificant eApansion of business since ?@6 ac#uired and mer&ed number of payment
solutions companies from different countries. In Becember 200, as part of di)estiture plan
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WorldPay official ebsite9 6ection7 History
2
WorldPay official ebsite9 6ection7 Who e are
3
WordPay "nnual ?eport and "ccounts 20129 C@uildin& toards our futureD
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that as a&reed9 +08 of company as sold to "d)ent International and @ain /apital. In that
time9 the folloin& oner structure as present7 208 ?@6 Eroup9 !08 "d)ent International
and !08 @ain /apital. "lso the ?@6 WorldPay as renamed to WorldPay. "fter the chan&in&
the onership structure the period of successful ac#uirements and mer&es folloed9 hich
enabled WordPay to eApand its business e)en more. (ast year9 in 0o)ember 20139 ?oyal
@an% of 6cotland sold its remainin& sta%e of about 20 percent in WorldPay to other to
firmFs ma2ority shareholders9 pri)ate e#uity firms "d)ent International and @ain /apital.
!. "c#uisitions and partnerships
"s pre)iously mentioned9 ?@6 ac#uisition of WorldPay resulted in serious capital
in)estment. 5he folloin& ac#uisitions and mer&ers occurred7
Period Acquisitions and mergers
2002 to 2007 6treamline9 6treamline International9 Payment5rust9 0etherlands based
@ibit9 ?is%Euardian and >6 based (yn%.
!
2009 /ardsa)e - sales or&aniGation
$
2011 4n)oy 6er)ices (imited - pro)ides merchants ith an off the shelf &lobal
netor%
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2013 /entury Payments - >6 payment processin& company
*
5oday9 WorldPay has stren&thened its strate&ic partnership model and &ained ad)anced sales
tools and analytics. WorldPay ac#uisitions ha)e opened up the future prospect of ne and
inno)ati)e solutions for customers.
+
$. Wor%in& conditions
Burin& the research about or%in& conditions in company WorldPay it as impossible to find
any ne&ati)e information. /ompanyFs &oal is to create a )ibrant9 modern or%in&
en)ironment for their or%ers and e)erythin& indicates they ha)e achie)ed it.
'. (ocations and softare de)elopment centres
WorldPay is alays loo%in& for a ay to enhance its I5 ser)ices in order to reduce its
operational costs9 but also to reduce the time needed for eAecutin& the transactions. In finance
e often say that time is money9 so hen customers ha)e a need for ne applications and
infrastructure to support their payments9 WorldPay see%s to deli)er that as #uic%ly as possible
4
WorldPay official ebsite9 6ection7 "rchi)e C?@6 (aunches ?@6 WorldPay brandD
5
.65ech9 6ophie @a%er Becember 20
th
9201!
6
4n)oy 6er)ices (imited official ebsite9 6ection7 "bout >s
7
5he Paypers9 CWorldPay >6 ac#uires /entury PaymentsD 6eptember 2'
th
2013
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WordPay >6 official ebsite7 CWorldPay >6 "nnounces Purchase of /entury PaymentsD
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and H1are:s netor% )irtualiGation is crucial in alloin& that.
,
5his softare enables
WorldPay to rapidly create )irtual applications bac%ed by )irtual netor%s that are
completely independent from the physical netor% hardare. 5he bi&&est and the most
important softare de)elopment centers are7 (ondon9 /ambrid&e9 Eateshead9 4dinbur&h9
@elfast9 @unni% <0etherlands=9 6eden9 6an .rancisco9 "tlanta9 1ontreal and 6in&apore.
*. Products and ser)ices
WorldPay pro)ides &lobally connected9 locally coordinated payment processin& ser)ice for
all sorts of businesses9 bi& and small. WorldPay uses sector specific approach to maAimiGe
transaction success rates. 0o sector is the same hen it comes to online payments9 so
company focuses at each sector differently. 6oftare9 applications9 technolo&y and support
are tailored across different industries to ensure that customersF online payment processes
meet their needs. .olloin& sectors are in WorldPay:s focus7
Airlines - 5oday online sales contribute to !28 of all airline company re)enues. WorldPay
helps airline companies to ma%e most of online acti)ities by deli)erin& tailored payment
ser)ices &lobally. With WorldPay companies in this sector are able to reach more customers
across more destinations9 collect payments from multiple sources9 eApert support from airline9
%eep fre#uent flyers flyin& and optimiGe mar&ins throu&h fraud reduction.
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igital content - In case of sellin& di&ital products li%e music9 )ideo or softare donloads9
or offerin& subscriptions for online content to customers9 there is no one-siGe-fits-all mode.
WorldPay can consolidate all of companies online payments9 increase re)enue and reduce
churn throu&h a one-clic% chec%out9 increase transaction success9 eApand into ne mar%ets
usin& alternati)e payments9 reduce ris% and payment char&es and mana&e the entire process
throu&h one supplier.
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!etail - Elobal retail business is boomin& and ill continue to &ro in future9 so payments
processin& and mana&ement is crucial. WorldPay is only &lobal payment and fraud pro)ider
that mana&es the entire payment process hich is hy more and more of the orld:s lar&est
retailers are turnin& to WorldPay e)ery day for payment solutions. WorldPay impro)es
customers: eAperience in this sector in ay that it pro)ides the ultimate choice in retail
payments9 eApert support from retail payment specialists and %eeps customer loyal throu&h a
one-clic% chec%out.
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9
H1are case study WorldPay dramatically impro)es application time-to-mar%et ith H1are
10
WorldPay official ebsite 6ection7 Products
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WorldPay official ebsite 6ection7 Products
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WorldPay official ebsite 6ection7 Products
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WorldPay:s primary aim is to pro)ide solutions that are desi&ned to maAimiGe online
transactions success and pro)ide &lobal customer reach. /ustomers: eAperience is impro)ed
throu&h the products such as7 payment gateways9 a multi-currency9 cross-border ser)ice
acquiring, alternative payments that can help businesses increase customer con)ersion rates9
access ne mar%ets ith lo card penetration9 mana&e alternati)e payments ith a sin&le
inte&ration9 treasury services ith aim of optimiGation of the costs and ris%s associated ith
international payment acceptance9 and risk management.
1
+. Website
0odays it is #uite impossible to ima&ine a successful company of hich information you
cannot find online. Internet has become probably the most important media and those that
don:t ha)e their on ebsite or the one they do ha)e lac%s of information or desi&n are
considered to be unreliable or e)en of poor #uality. .or a &lobal company it is )ery important
to publish reports9 latest nes and acti)ities and contact information throu&h modern and
interacti)e eb platform. WorldPay pro)ides all these information on their address7
.orldpay.com. 5he ebsite &i)es opportunity to current and potential customers to find
out interestin& facts9 ser)ice benefits9 to as% for ad)ice or help. In this manner9 WorldPay
stands out as an open and friendly to its tar&et mar%et9 and hence uses this ad)anta&e as a
competiti)e one. .urthermore9 their ebsite as the main source of information e used in
this /ase 6tudy and e found it #uite easy to access to data needed. Hence9 the opinion e
share as a &roup is that WorldPay ta%es care of their e-business and that their ebsite is )ery
informati)e and appealin&.
,. WorldPay and PayPal - ho it functions
WorldPay as a &lobal payment pro)ider offers )ariety of possibilites to its customers.
Hoe)er9 collaboration ith PayPal seems to be the most attracti)e one. 5his as the reason
e ha)e chosen to eAplain ho WorldPay functions to&ether ith PayPal. >nfortunately9 as
e are limited ith this /ase 6tudy len&th e are unable to present the procedure of other
WorldPay ser)ices.
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WorldPay official ebsite 6ection7 Products
$
PayPal is the safer9 easier ay to pay and &et paid online.
5he ser)ice allos anyone to pay in any ay they prefer9
includin& throu&h credit cards9 ban% accounts9 PayPal 6mart
/onnect or account balances9 ithout sharin& financial
information.
1!
/ollaboration beteen WorldPay and PayPal
is established throu&h additional ad)anta&e pro)ided to
clients all o)er the orld hereby it is possible to accept
PayPal payments throu&h the WorldPay payment pa&es. 5his
results in customer:s time and effort sa)in&. When a shopper
selects PayPal9 they are di)erted to the PayPal lo&in pa&e to
complete the transaction. 6hoppers ho do not yet ha)e an
account are re#uired to open one before bein& able to complete
the payment. 5his len&thens the payment process time but is a one
off process.
1$
Iour shopper recei)es a payment confirmation email from both WorldPay and PayPal and the
payment is assi&ned both a WorldPay and a PayPal 5ransaction IB. In the PayPal
confirmation email your PayPal account name <an email address= is displayed- please be
aare that the shopper could use this address to contact you so your PayPal account name
should be a )alid email address <refer to 6ettin& >p for more information on specifyin& your
PayPal account name=.
.i&ure 3 .eedbac% information
1/. .inancial success
@y de)elopin& and spreadin& its business both &eo&raphically and throu&h product lines9
financial performance of the company has also chan&ed and in most cases impro)ed. 6ince
the financial report for pre)ious year <2013= isnFt published yet9 the information e present in
this /ase 6tudy refer to 2012. It as durin& that period that Biners /lub and /hina >nion
Pay are accepted as payment types. 5hese positi)e and forard-pushin& business nes had
14
PayPal official ebsite7 https7JJ.paypal.comJbaJc&i-binJebscr?cmdKpJ&enJabout-outside
15
WorldPay >ser EuideL PayPal Euide - PayPal payment funds settled to you by PayPal. <sin&-up after 23J3J2011=L
'
.i&ure 1 0ecure payment
throu&h Paypal
.i&ure 2 (o&in option
their costs hich is best seen throu&h financial loss of M'2 million at the end of the year.
/onsolidated 6tatement of /omprehensi)e Income is &i)en in table belo7
"a#le 1: Consolidated Statement o$ Com%re&ensi'e (ncome $or t&e $inancial year ended 31 ecem#er 2012
"s e can see9 WorldPay had &ross profit of M'3! hich throu&h effects of operatin& and
administrati)e eApenses falls to operatin& profit of M** million. @ut this amount asnFt
enou&h to co)er finance costs leadin& to loss before taA. 5he situation orsens after
considerin& taAation char&es hereby a comprehensi)e loss of M'2 million for the financial
year is stated. .inance costs9 as first CobstacleD noted9 refer to7 effecti)e interest on
borroin&s9 preferred e#uity certificates and other finance costs. Interest eApense arises from
the EroupFs borroin&s that include eAternal third-party loans and dra-don facilities9 and
the issue of preferred e#uity certificates to the /ompanyFs parent entity. 1oreo)er9 as the
.inancial ?eport eAplains9 the Eroup is sub2ect to income taAes in numerous 2urisdictions and
there are many transactions and calculations for hich the ultimate taA determination is
uncertain. 5he Eroup is mainly eAposed to >K taA9 hich is best seen in table belo7
1able 22 1a3 costs
5he actual taA char&e differs from the eApected taA char&e computed by applyin& the a)era&e
>K corporation taA of 2!.$8.
*
11. Conclusion
Ha)e you e)er been in situation that you ant to buy somethin& but there is no such a thin&
in your city? Iou ha)e to spend time and money to &o abroad 2ust to find some ne thin&. In
the last fe decades this is not bi& deal anymore because there is possibility to buy thin&s
online trou&h internet. /onductin& business online is called e business. 4 business become
important part of e)ery person since it is &roin& ith an enormous speed. 5he most
important #uestion is it secure to buy online since your personal card information has to be
submitted. In our or% e eAplained hy e business is important and trou&h eAample of
WorldPay eAamine ad)anta&es of startin& an e business. We ha)e eAplained function as ell
as success of WorldPay and pro)ided close loo% of an e business eAample. We ha)e shoed
ho WorldPay helped e business to de)elop since the most of people ha)e no fear hen
usin& WorldPay.
12. (iterature
WorldPay official ebsite http7JJ.orldpay.comJ
WordPay >6 official ebsite CWorldPay >6 "nnounces Purchase of /entury
PaymentsD9 http7JJ.orldpay.usJWorldPay>6-"nnounces-Purchase-of-/entury-
Payments
WordPay "nnual ?eport and "ccounts 20129 C@uildin& toards our futureD
http7JJ.orldpay.comJaboutNusJcontentJorldpay-annual-report-2012.pdf
.65ech9 6ophie @a%er Becember 20th 9201! http7JJ.fstech.co.u%JfstJWorldPay-
ac#uires-/ardsa)e.php
4n)oy 6er)ices (imited official ebsite9 6ection7 "bout >s
http7JJ.en)oyser)ices.comJenNcorporate.php?pa&e6electKc1Opa&eKcorporate
5he Paypers9 CWorldPay >6 ac#uires /entury PaymentsD 6eptember 2'th 6eptember
20139http7JJ.thepaypers.comJonline-paymentsJorldpay-us-ac#uires-century-
paymentsJ*$2'!$-3
PayPal official ebsite7https7JJ.paypal.comJbaJc&i-binJebscr?cmdKpJ&enJabout-
outside
WorldPay >ser EuideL PayPal Euide - PayPal payment funds settled to you by
PayPal.<sin&-up after 23J3J2011=L
http7JJ.orldpay.comJsupportJ%bJb&JpaypalN)3Jpp.htm
H1are case study WorldPay dramatically impro)es application time-to-mar%et ith
H1are
http7JJ.)mare.comJfilesJpdfJcompanyJH1are-WorldPay-13P!-40-/ase-
6tudy.pdf?srcKWWWNcustomersNH1are-WorldPay-13P!-40-/ase-6tudy.pdf
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