3.6 Technology pivot

Described image
Figure 8 A handheld payment device that has revolutionised how customers can pay using their credit and debit cards and even their smartphones
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A handheld contactless payment card reader

Figure 8 A handheld payment device that has revolutionised how customers can pay using their credit and debit cards and even their ...

A technology pivot means switching to a new platform or delivery system. There have been many companies who have tried to design that one ‘killer application’ that everyone will want, only to find that they don’t! However there are several examples of companies that have successfully used what they have in another dimension, one of which is Worldpay.

Worldpay originally sought to be an online shop. Soon they recognised that they had not designed into their platform the need to operate across international boundaries and currencies. This led to the development of their payments software, which now powers many online retailers around the world. In fact, recently Worldpay was bought by US-based company Fidelity National Information Services for $35 billion.

Activity 3 Worldpay’s technology pivot

Timing: Allow approximately 20 minutes to complete this activity

Read Worldpay’s story and then make a list of the key events and trends that led to its meteoric rise in value since it started in 1989.

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Discussion

Here are the points we picked out:

  • Change of ownership – bought by NatWest Bank, who were then acquired by Royal Bank of Scotland (RBS)

  • International expansion

  • Regulatory enforced sale by RBS as a condition of their public buyout following the financial crisis

  • Technology-related changes leading to a massive increase in e-commerce and in particular how payments are made. Therefore more customers are making purchases online, and banking online meaning that more banks, retailers, restaurants and bars are using digital payment systems.

3.5 Customer need

3.7 Motive pivot