44 / 354
6
Business
Competitive strengths
44
Worldline
2016 Registration Document
This diagram has been set up using the following definitions:
Issuing transaction processing: Processing of the issuing
●
payment transaction;
Services to cardholders: Services such as call centre and
●
VAS services (card blocking, loyalty, card-linked solutions,
coupons etc.) provided for and on behalf of card issuers.
CSM: Clearing and settlement mechanism;
●
Credit/debit transfers: Processing of SEPA payment services;
●
restaurants, hospitality, etc.;
Services to merchants: services providing Value in or around
●
the payment such as loyalty, gift cards, private label cards, or
vertical solutions with specific functions for e.g. taxis,
Acquiring transaction processing: Third party processing on
●
behalf of direct or indirect merchant acquirers;
Commercial Acquiring: Contracting with the merchant for
●
the provision of the merchant account and access to the
necessary schemes to enable the acceptance of the
payment method;
and card not present environment;
Acceptance POS/e-commerce: The provision of acceptance
●
services including the terminals, maintenance etc. and
provision of payment gateways in both the card present
Services to new digital businesses: services to companies
●
leveraging digital to provide services using payment
(transportation companies (e-Ticketing), government (tax
collection), etc.).
The wide variety of participants in the payment transaction
processing industry and the variations among such participants
in their coverage of sub-markets within this industry make it
difficult to compile specific and reliable market share data. The
following chart summarizes the Company’s estimates with
respect to the competitive positions of certain participants in the
payment transaction processing industry in Europe only.
PAYMENT SERVICE PROVIDER (PSP) RANKING IN
EUROPEANUNION2015 EUROPEANTURNOVER
(IN € MILLION)
Worldline*
NETS
WorldPay (Net)
First DATA
Ingenico*
SIX Payment Services
ConCardis
Global Payments
SIA
Wirecard
B+S
Total Systems
0
500 1,000 1,500
* European turnover excluding payment terminal revenue
Source: Company estimates.
Competitive strengths
6.3
Amajor player in Europe with an expanding footprint in emerging
6.3.1
markets
with a significant global footprint. This scale helps the Group to
drive innovation, be price competitive (thanks to economies of
scale), and attract large multi-national clients looking to
outsource mission critical payment activities or other digital data
processing services. The Group maintains a particularly broad
base of customers across global business lines characterized by
long-standing and diversified relationships. This positioning
provides the Group with a strong platform from which to pursue
both organic and inorganic growth opportunities which are
expected to arise in the sector. The Group’s track record of
electronic transaction providers in terms of revenue across its
three global business lines and, in addition to its strong home
market position in France, it holds market leadership positions in
Belgium, in the Netherlands, in Germany and in Italy. The
Group’s status as one Europe’s leading players is coupled with
its strong and growing presence in emerging markets such as
India, China and certain countries in Latin America, where it
benefits from local growth and knowledge. More generally, the
Group’s scale is reinforced by the strong backing of the Atos
group, itself one of the largest IT services providers in Europe
The Group is one of Europe’s largest payment service and
successful inorganic growth (e.g., acquisition and successful
integration of Banksys in Belgium, successful entry into the
Indian market in 2010 through its acquisition of Infotek and
more recently the acquisition of Equens (The Netherlands,
Germany and Italy) and the strategic alliance with Komercni
banca in the Czech Republic) further underlines its ability to
seize such inorganic growth opportunities and consolidate its
competitive position and scale.
Please refer to Section
5.1.5 for a description of the impacts of
the acquisition of Equens, Paysquare and KB Smartpay.