Worldpay, Inc.

Worldpay, Inc. was an American payment processing company and technology provider. In June 2019 it was acquired and merged into Fidelity National Information Services (FIS). Before its acquisition, it was headquartered in the greater Cincinnati, Ohio area. Worldpay, Inc. (formerly Vantiv), was the largest U.S. merchant acquirer ranked by general-purpose transaction volume.[2]

This article is about the company formerly known as Vantiv. For the original UK Worldpay acquired by Vantiv, see Worldpay Group plc.
Worldpay, Inc.
FormerlyMidwest Payment Systems (1971–2003)
Fifth Third Processing Solutions (2003–2011)
Vantiv (June 2011–January 2018)
TypeSubsidiary
IndustryFinancial services
Merchant services
Technology
Payment processor
Founded1971
HeadquartersCincinnati, Ohio, United States
Key people
Charles Drucker
( Former Executive Chairman & CEO)
Mark Heimbouch
(Former President and COO)
RevenueUS$3.9 billion (2017)[1]
Number of employees
8,500
ParentFIS
Websiteworldpay.com

The company provides payment and technology services to merchants and financial institutions in the U.S. and processes more than 20.1 billion payment transactions and approximately $726 billion in volume annually. As of 2014, the predecessor company, Vantiv, supported approximately 400,000 merchant locations and more than 17,000 automated teller machines (ATMs) in 46 states and eight countries.[2]

The company's merchant base includes customers in vertical markets such as retail, restaurant, government, e-commerce, supermarket, drug store, business to business and consumer services. Its financial institution base includes diverse set of financial institutions, including regional banks, community banks, credit unions and regional personal identification number (PIN) debit networks.[3]

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,[4] Vantiv became a publicly traded company on March 22, 2012, listed on the NYSE under the ticker symbol "VNTV".[5] It acquired London-based Worldpay Group plc and changed its name to Worldpay, Inc. on January 16, 2018.[6]

History

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]

Vantiv became a publicly traded company on March 22, 2012, listed on the NYSE under the ticker symbol "VNTV."[13]

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.[14]

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.[15]

In July 2013, Vantiv announced an agreement to acquire privately held Element Payment Services.[16] Element is a provider of fully integrated PCI DSS compliant payment processing solutions for merchants and business management software providers.[17]

On May 12, 2014, Vantiv confirmed a $1.65 billion acquisition of Mercury Payment Systems LLC.[18]

In November 2016, Vantiv acquired the US operations of Canadian payment processor Moneris Solutions.[19]

In July 2017, the company announced its intention to acquire British-based Worldpay for $10.4 billion.[20] 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.[21] The transaction was completed on 16 January 2018.[22]

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.[23]

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.[24] The acquisition closed in June 2019 and Worldpay was merged into FIS.[25]

In November 2020, WorldPay expands into Argentina by securing domestic card scheme acquiring licenses in Argentina. [26]

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.[27] 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.[28]

Financial institution relationships

Worldpay works with financial institutions to develop programs and tools to simplify payment strategies.[29] 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.[30]

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.[31]

References
  1. "Annual Report 2017" (PDF). Worldpay, Inc.
  2. "The Nilson Report - News and Statistics for Card and Mobile Payment Executives". www.Nilson report.com.
  3. "VNTV.N Company Search Results". Reuters.
  4. "Third Processing Changes Name to Vantiv".
  5. "Vantiv Joins the Ranks of Publicly Traded Payment Processors". www.digitaltransactions.net.
  6. "Vantiv and Worldpay Complete Combination to Form Worldpay, Inc. | Worldpay". www.worldpay.com. Retrieved 2018-01-31.
  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. Brenton Cordeiro (November 10, 2011). "Vantiv files for IPO as market looks up again". Reuters. Retrieved June 30, 2015.
  14. "Vantiv completes $361M buyout of Litle & Co". Archived from the original on July 3, 2013.
  15. Finextra (2013-04-09). "Vantiv becomes first US acquirer ready for MasterCard EMV rules". Finextra Research. Retrieved 2017-08-09.
  16. "Vantiv Newsroom & Credit Card Trends".
  17. "Vantiv Credit Card Processing and POS Solutions".
  18. Caproni, Erin (12 May 2014). "It's official: Vantiv confirms $1.65B acquisition". www.bizjournals.com. Retrieved 2017-08-09.
  19. "Vantiv has made a key acquisition". Business Insider. 14 November 2016. Retrieved 26 June 2017.
  20. Hussain, Noor Zainab (5 July 2017). "U.S. card firm Vantiv goes global with $10 billion Worldpay buy". Reuters.
  21. "The Deal Is Sealed, Vantiv Will Buy Worldpay For $10.4 Billion". Pymnts.com. 9 Aug 2017. Retrieved 9 August 2017.
  22. "Vantiv officially completes Worldpay acquisition". Mobile Payments Today. 16 January 2018. Retrieved 17 January 2018.
  23. "Worldpay Group invests in US payments start-up Pazien". Private Equity Wire. 14 May 2014. Retrieved 12 March 2021.
  24. "FIS's Worldpay Deal Ratchets Up Race for Payments Companies M&A". Bloomberg.com. 18 March 2019. Retrieved 2019-03-22.
  25. "FIS Closes Acquisition of Worldpay, Enhancing its Global Technology Leadership Serving Merchants, Banks and Capital Markets - Press Releases | FIS". FIS Global.
  26. "FIS Worldpay Expands Paytech Solutions to Argentina". 4 November 2020.
  27. 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.
  28. Nishant, Niket; Sen, Anirban (July 6, 2023). "Buyout firm GTCR picks up majority stake valuing FIS unit Worldpay at $18.5 billion". Reuters.
  29. "Preferred providers". IBC Banks.
  30. "Financial Solutions Expands its Payments Offering".
  31. "National Association of Federally-Insured Credit Unions (NAFCU)". www.nafcu.org.
    • Historical business data for Worldpay, Inc.:
    • SEC filings
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