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Worldpay, Inc.

From Wikipedia, the free encyclopedia
This article is about the company formerly known as Vantiv. For the original UK Worldpay acquired by Vantiv, see Worldpay Group plc.
Worldpay
FormerlyMidwest Payment Systems (1971–2003)
Fifth Third Processing Solutions (2003–2011)
Vantiv (2011–2018)
Company typePrivately held company
IndustryFinancial services, Merchant services, Technology, Payment processor
Founded1971; 53 years ago (1971)
Headquarters
Cincinnati, Ohio
,
United States
Key people
Charles Drucker (CEO)
RevenueUS$4.9 billion (2023)[1]
OwnerGTCR (55%), FIS (44%)
Number of employees
8,500 (2024)
Websitewww.worldpay.com

Worldpay is an American multinational financial technology company and payment processing company. Worldpay provides payment and technology services to merchants and financial institutions globally generating 40 billion transactions across 146 countries and 135 currencies.[2]

With $4.9 billion in revenue as of 2023, Worldpay ranks as one of the largest non-bank merchant acquirers in the world processing $2.2 trillion in transactions annually.[3] With 8,500 employees, the company is headquartered in Cincinnati, Ohio with its international headquarters in London and 40 offices across 25 countries.[4] As of February 2024 Worldpay is co-owned by GTCR with a majority ownership interest of 55% and FIS retaining a 45% ownership interest.[5]

Worldpay's merchant base includes customers in vertical markets including retail, restaurant, government, e-commerce, supermarket, drug store, business to business and consumer services. Its financial institution base includes a range of financial institutions, including regional banks, community banks, credit unions and regional personal identification number (PIN) debit networks.[6]

History

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In 1971, Fifth Third Bank formed Midwest Payment Systems (MPS) to provide Electronic Funds Transfer (EFT) services to financial institutions. In 1977, Jeanie, the nation's first shared online ATM network was developed and implemented. In 1991, MPS expanded to offer Merchant Services. In 2000, MPS acquired Integrated Delivery Technologies, Inc. (IDTI), Cartel Network and ACI Merchant Services.[7]

In 2003, Midwest Payment Systems adopted the name Fifth Third Processing Solutions. In 2006, the company acquired Card Management Corporation (CMC) to provide a broader range of processing services. Several years later, in 2009, Fifth Third Processing Solutions spun off from Fifth Third Bancorp and was launched as a joint venture between Advent International and Fifth Third Bank, a subsidiary of Fifth Third Bancorp.[8]

By the end of 2010, the company had acquired TNB Card Services,[9] National Processing Company (NPC)[10] and certain assets of Springbok Services, Inc. Prepaid Platform.[11] In June 2011, Fifth Third Processing Solutions assumed the Vantiv name.[12]

The company adopted the name "Vantiv" in June 2011 as a step towards becoming a public company. Previously a joint venture between Advent International and Fifth Third Bancorp,[13] Vantiv became a publicly traded company on March 22, 2012, listed on the NYSE under the ticker symbol "VNTV".[14]

In December 2012, Vantiv acquired privately held Litle & Co. for $361 million. Litle develops e-commerce payment processing solutions that are used by companies that accept payments for goods and services online, via phone, and via mail. Vantiv said it would integrate Litle's technologies into its point-of-sale and e-commerce processing offerings.[15]

In April 2013, Vantiv became the first U.S. acquirer to complete MasterCard's testing requirements to process EMV transactions for MasterCard, Maestro and Cirrus brands at both ATM and at the point-of-sale locations.[16]

In July 2013, Vantiv announced an agreement to acquire privately held Element Payment Services.[17] Element is a provider of fully integrated PCI DSS compliant payment processing solutions for merchants and business management software providers.[18]

On May 12, 2014, Vantiv confirmed a $1.65 billion acquisition of Mercury Payment Systems LLC.[19]

In November 2016, Vantiv acquired the US operations of Canadian payment processor Moneris Solutions.[20]

In July 2017, the company announced its intention to acquire British-based Worldpay for $10.4 billion.[21] Subsequent announcements have indicated that the combined entity will be named "Worldpay Inc." headquartered and listed in the United States, but internal operations will be based in the U.K.[22] The transaction was completed on 16 January 2018 and changed its name to Worldpay, Inc. on January 16, 2018.[23][24]

On July 1, 2018, Worldpay Inc. acquired Pazien, a US payments data platform startup that Worldpay Group plc first invested in on May 14, 2014.[25]

In March 2019, Fidelity National Information Services, Inc. (FIS), announced a $43 billion deal to buy Worldpay, reported as the biggest deal ever in the international payments sector.[26] The acquisition closed in June 2019 and Worldpay was merged into FIS.[27]

In November 2020, WorldPay expands into Argentina by securing domestic card scheme acquiring licenses in Argentina. [28]

In February 2023, in the wake of pressure from activist investors, FIS announced it would spin off its merchant business that consisted of Worldpay in the next 12 months.[29] In July, private equity firm GTCR agreed to acquire a 55 percent stake in WorldPay from FIS for $11.7 billion, valuing WorldPay at $18.5 billion.[30][31]

In February 2024, Worldpay was separated from Fidelity National Information Services (FIS) to become an independent company once again.[32] Today it is co-owned by GTCR (55%) and FIS (44%).

Solutions

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Worldpay's portfolio includes solutions to help customers make, take, and manage payments. These solutions are tailored for various platform, business owner, and enterprise needs.

In May 2024 Worldpay released a tap to pay feature on iPhone enabling merchants to securely accept contactless payments including contactless credit and debit cards, Apple Pay and other digital wallets.[33]

Financial institution relationships

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Worldpay works with financial institutions to develop programs and tools to simplify payment strategies.[34] The company's financial products include credit cards, ATM processing, merchant services, rewards and fraud prevention. Additionally, Worldpay assists financial institutions with pre-paid and gift cards, card personalization, debit PIN processing, cardholder eServices and more.[35]

Worldpay provides payment strategies and technologies to over 1,400 financial institutions, including more than 700 credit unions throughout the U.S., supporting over 33 million debit cards and processing more than 15.7 billion transactions each year.[36]

References

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  1. ^ "FIS Reports Full-Year 2023 Results, Introduces 2024 Outlook, Raises Future Forward Expectations and Announces $500 Million Increase to Share Repurchase Goal". FIS Investor Relations. FIS. Retrieved 16 July 2024.
  2. ^ "About Worldpay". Worldpay. Retrieved 16 July 2024.
  3. ^ "Worldpay, one of the largest payment processors in the world, making Cincinnati its global headquarters". WCPO 9 Cincinnati. 12 December 2023. Retrieved 16 July 2024.
  4. ^ "Our Worldpayers". Worldpay Careers. Worldpay. Retrieved 12 July 2024.
  5. ^ "Worldpay Begins Operating as Independent Company". Worldpay. Retrieved 16 July 2024.
  6. ^ Chapman, Tom (7 February 2024). "How Worldpay Became a Leader in Payments Tech and Solutions". fintechmagazine.com. Retrieved 16 July 2024.
  7. ^ "Midwest Payment Systems completes Integrated Delivery Technologies, Inc., Cartel Network acquisition".
  8. ^ Advent International
  9. ^ "Sells Card Processing Business to Fifth Third Processing Solutions".
  10. ^ Fifth Third Processing buys National Processing Co.
  11. ^ Cincinnati firm buys Springbok Services assets
  12. ^ "CUNA News Home Page". www.cuna.org.
  13. ^ "Third Processing Changes Name to Vantiv".
  14. ^ "Vantiv Joins the Ranks of Publicly Traded Payment Processors". www.digitaltransactions.net.
  15. ^ "Vantiv completes $361M buyout of Litle & Co". Archived from the original on July 3, 2013.
  16. ^ Finextra (2013-04-09). "Vantiv becomes first US acquirer ready for MasterCard EMV rules". Finextra Research. Retrieved 2017-08-09.
  17. ^ "Vantiv Newsroom & Credit Card Trends".
  18. ^ "Vantiv Credit Card Processing and POS Solutions".
  19. ^ Caproni, Erin (12 May 2014). "It's official: Vantiv confirms $1.65B acquisition". www.bizjournals.com. Retrieved 2017-08-09.
  20. ^ "Vantiv has made a key acquisition". Business Insider. 14 November 2016. Retrieved 26 June 2017.
  21. ^ Hussain, Noor Zainab (5 July 2017). "U.S. card firm Vantiv goes global with $10 billion Worldpay buy". Reuters. Archived from the original on July 5, 2017.
  22. ^ "The Deal Is Sealed, Vantiv Will Buy Worldpay For $10.4 Billion". Pymnts.com. 9 Aug 2017. Retrieved 9 August 2017.
  23. ^ "Vantiv and Worldpay Complete Combination to Form Worldpay, Inc. | Worldpay". www.worldpay.com. Retrieved 2018-01-31.
  24. ^ "Vantiv officially completes Worldpay acquisition". Mobile Payments Today. 16 January 2018. Retrieved 17 January 2018.
  25. ^ "Worldpay Group invests in US payments start-up Pazien". Private Equity Wire. 14 May 2014. Retrieved 12 March 2021.
  26. ^ "FIS's Worldpay Deal Ratchets Up Race for Payments Companies M&A". Bloomberg.com. 18 March 2019. Retrieved 2019-03-22.
  27. ^ "FIS Closes Acquisition of Worldpay, Enhancing its Global Technology Leadership Serving Merchants, Banks and Capital Markets - Press Releases | FIS". FIS Global.
  28. ^ "FIS Worldpay Expands Paytech Solutions to Argentina". 4 November 2020.
  29. ^ Nishant, Niket; Sen, Anirban; Vinn, Milana (2023-02-13). "FIS takes $17.6 billion hit in merchant unit to be spun off". Reuters. Retrieved 2023-02-13.
  30. ^ Nishant, Niket; Sen, Anirban (July 6, 2023). "Buyout firm GTCR picks up majority stake valuing FIS unit Worldpay at $18.5 billion". Reuters.
  31. ^ "Fidelity National Information Services to Sell Majority Stake in Worldpay for $11.7 Billion". Wall Street Journal. July 6, 2023. Retrieved 16 July 2024.
  32. ^ "Worldpay Becomes Independent Company as GTCR Sale Closes". PYMNTS. February 1, 2024.
  33. ^ "Worldpay Makes Payments Even Easier, Launches Tap to Pay on iPhone". Worldpay. 2 May 2024. Retrieved 17 July 2024.
  34. ^ "Preferred providers". IBC Banks.
  35. ^ "Financial Solutions Expands its Payments Offering".
  36. ^ "National Association of Federally-Insured Credit Unions (NAFCU)". www.nafcu.org.
[edit]
  • Official website
    • Historical business data for Worldpay, Inc.:
    • SEC filings
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