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Risk Factors
Risks related to the Group’s business and industry
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Worldline
2016 Registration Document
effect on its business, financial condition, results of operations or
services may materially decrease, which could have an adverse
unable to effectively respond to competition, demand for its
various markets in which the Group operates. If the Group is
more effectively capitalize on potential consolidation trends
the extent that the Group’s competitors or new industry players
payment scheme to other commercial acquirers. Additionally, to
in Belgium due to the opening of the Bancontact/Mister Cash
In particular, the Group faces potentially increased competition
business, financial condition, results of operations and prospects.
services, which could also materially and adversely affect its
Group faces significant price pressure on its products and
contends with across the markets in which it operates, the
prospects. Moreover, given the level of competition the Group
such as financing, that the Group is unable to offer.
financial institutions and able to offer clients additional services,
disadvantage vis-à-vis its competitors that are fully licensed
for a financial institution license, the Group may find itself at a
the businesses in which it currently operates without the need
from which it currently benefits. Furthermore, with respect to
significantly, possibly reducing certain competitive advantages
nature and scale of the Group’s competitors, may change
particularly in Europe, the competitive landscape, including the
within the currently fragmented payment services industry,
rates comparable to those in the Group’s traditional card
used to process the related transactions or cannot be offered at
electronic payment market, and the Group’s services are not
non-traditional competitors gain a greater share of the
profitable than its role in traditional card processing. If these
processing these payments is less extensive and may be less
accommodate these new payment methods, the Group’s role in
Although many of the Group’s services are designed to
are the industry’s more traditional players such as the Group.
regulatory scrutiny in terms of pricing and business practices as
and prospects.
on the Group’s business, financial condition, results of operation
processing business, it could also have a material adverse effect
services industry, are not yet subject to the same level of legal or
regarded by consumers and, as new entrants to the payments
considerable financial resources and robust networks, are highly
based. Moreover, these non-traditional competitors have
which much of the industry’s current business model is largely
traditional interchange-based payment processing systems on
“closed loop” payment methods that generally bypass the
Samsung, and Google, which offer alternative peer-to-peer and
emerging from non-traditional competitors, such as PayPal,
The electronic payment industry is facing new competition
payment services. There is a risk that these services disrupts the
(Samsung Pay) and Google (Google Wallet) propose mobile
payment using Apple’s iPhone’s devices. In addition, Samsung
countries, based on NFC technology. This technology allows
United States in 2014 and subsequently in several European
services. Notably, Apple launched its Apple Pay service in the
Also, major industry players have launched mobile payment
economics of other participants in the payment value chain.
services to newmarkets.
The Group may encounter difficulties expanding its existing
new markets entered may make the Group’s products less
that the regulatory frameworks or consumer preferences in the
strategy involves a number of significant risks including the risk
Group’s markets to other markets served by the Group. This
services that have experienced success in one or more of the
the geographic footprint for its services including by expanding
One of the core elements of the Group’s strategy is to expand
business, financial condition, results of operation and prospects.
which, in turn could have a material adverse effect on its
markets, the Group’s growth strategy may not be successful,
not able to successfully expand its existing service to new
providers of such services in these new countries. If the Group is
particularly in light of the competition it faces from incumbent
to expand its services into new markets will be successful,
attractive. There can be no assurances that the Group’s efforts
could adversely affect the Group’s revenue by reducing the
Consolidation in the banking and financial services industry
more dependent on a more limited number of clients.
number of its existing or potential clients and making it
the Group’s clients may sell business operations to entities that
clients may merge with entities that are not the Group’s clients,
existing contracts. Namely, the Group faces the risk that its
adversely affect its revenue or lead to the non-renewal of
number of the Group’s clients and potential clients, which could
Mergers and consolidations of financial institutions reduce the
consolidations in the banking and financial services industry.
In recent years, there have been a number of mergers and
or merge with or are acquired by other entities that are not the
could be particularly affected. Further, if the Group’s clients fail
comprises principally banks and other financial institutions,
Software Licensing”) global business line, whose customer base
of the Financial Services (previously “Financial Processing &
agreements and projected revenue with these clients. Revenue
internally, thereby adversely impacting the Group’s existing
platforms operated by the Group’s competitors or managed
clients may otherwise cease to exist or migrate to other
are not the Group’s clients or the Group’s financial institution
financial condition, results of operations and prospects.
could have a material adverse effect on the Group’s business,
currently provides or could provide. Any of these developments
perform in-house some or all of the services which the Group
leverage in negotiating terms with the Group or could decide to
resulting from mergers or consolidations would have greater
also possible that the larger banks or financial institutions
may discontinue or reduce their use of the Group’s services. It is
Group’s clients, or that use fewer of the Group’s services, they