As the business world has taken note of Vantiv’s Worldpay acquisition, much of the narrative has focused on the size and scope of the deal. The acquisition creates a nearly $29 billion company and allows Vantiv to diversify its client base globally.
But what does all this mean to payment facilitators?
“One of the largest U.S. acquirers with a very large PF focus getting married to a player in 146 countries is likely to accelerate PF sponsorship globally,” said Todd Ablowitz, president of Double Diamond Group and co-publisher of PaymentFacilitator.com.
Rick Oglesby agrees. The impact to payment facilitators is likely to result in both short-term and long-term benefits, starting with the power of a combined sales and marketing team, he said. Oglesby is principal of AZ Payments Group.
“In the short term, Worldpay is likely to begin selling Vantiv solutions in the U.S., so Vantiv’s distribution reach for the payment facilitator product will extend quite a bit,” he said. “We can also expect that Worldpay’s non-U.S. assets will enhance their payment facilitator offering to take advantage of Vantiv’s knowledge of the business.”
Oglesby anticipates that over time, the new Worldpay will consolidate its platforms and products – as well as its know-how – globally.
“That’s a big challenge, particularly the global part,” he said. “Acquiring at a global level across a variety of differing merchant types and distribution channels requires a tremendous number of business relationships and technology platforms. Pulling it together into something cohesive will take some time.”
Overall, he said, the deal is a plus for payment facilitators.
“The biggest provider in the payment facilitator business just got access to a much larger sales and marketing team, so they’ll be able to increase awareness which should drive demand. Over time, payment facilitators will gain easier access to a global market, which means their businesses could grow exponentially,” Oglesby said.
First Data, another acquiring giant, highlighted its own global capabilities – and their benefit to payment facilitators – in its most recent earnings announcement. As an example, it said its payment facilitator platform enables authorization in more than 150 currencies and settlement in more than 17.
And, responding to an analyst’s line of inquiry about payment facilitators and the company’s e-commerce program during its last earnings call, First Data CFO Himanshu Patel reiterated the global point:
“Our clear number one differentiator is really for global enterprise eComm clients who need multi-currency, multi-country, multiple payment method capabilities with one single point of integration,” Patel said.