Global PaymentsBy: Jamilah Ali, Tia Jurkiw, Justin Boggs, Steve Young, & Madison Hays

● Purpose of presentation:o Provide an introduction of Global Paymentso Explain how credit card processing workso Give an overview of the company’s business modelo Compare business model to competitoro Propose an innovation idea

Purpose

Introduction to Global Payments

● Incorporated on September 1, 2000● Credit, debit and check processing for ISOs,

merchants, financial institutions, government agencies, and multi-national corporations

● One of the leading processing intermediaries for businesses all around the world

How Does Global Payments Work?

Business Model Canvas

Value Proposition

Global Payments offers electronic processing services for merchants such as credit or check processing. We focus on high quality and offering the newest innovations so that our customers always have the most up-to-date, safe and reliable processing capabilities. We have been in the business for over 40 years and with that experience have been a leader in the industry since the 1960’s.

Customer Segments

Two segments: ● North American Merchant Services

o U.S. and Canadao 70.8% of revenues

● International Merchant Serviceso Europe and the Asia-Pacific regiono 29.2% of revenues

Channels

Direct Sales Channel● Mid-sized to large merchants

Independent Sales Organizations Channel● Mid-sized to smaller merchants

Value-Added Reseller● Products available to cater to contactless payment cards as well as

mobile payments marketsElectronic Channels are most effective● Easiest to implement and maintain

Customer Relationships

● Customer acquisition

● Customer retention

● Upselling

Key Resources

● Humano Sales representatives

o Engineers/Technical team that creates and monitors the services

o Marketing

o Management team

● Physicalo Buildings where operations/services/IT are run

o Warehouse where machines are kept then distributed

o Transportation/Vehicles

Key Partners

● Key Supplier Relationshipso Working with major credit and debit card companies

such as Visa and Mastercard to be accepted payment on machines.

● Strategic Alliance o Gaming/gambling industryo Currency conversiono Referral Partners

Key Activities● Production

o Making of card machineso Coding/Programming software

● Problem Solvingo Security o Efficiency o Cost management

● Platform/Networko Website describing brand and companyo Software/Hardware

● Breakdowno 30% Productiono 40% Problem Solvingo 30% Platform/Network

Cost Structure

● Cost-Driven● Cost of service: salaries, wages, expenses

paid to operations and technology ● Operating expenses

Revenue Stream

● Leasing, renting, selling revenues from credit card processing machines

● Revenue in 2014: $2,554,236,000

Competitor Model: First Data

Model Comparison

● Cost Structureo Value vs. Cost-Driven

● Customer Relationshipso Technical Supporto Personal Assistance

Innovation

● Create an online forum● Global payment professionals overseeing

the forum 24/7● Forum will only be assigned in the US● Increased customer retention

Innovation continued…

● Cost for labor: $123,000/year● Forum cost: $100/year● Average customer spends $600/year● Retain 205 customers to pay back the expense

Summary

● Global Payments’ Value Proposition● Key Business Model Blocks● Business Model Comparison● Innovation Proposal

Sources

Global Payments Review (Slides 9, 16 & 17): http://www.merchantmaverick.com/reviews/global-payments-review/Better Business Bureau (Slide 9): http://www.bbb.org/atlanta/business-reviews/financial-services/global-payments-in-atlanta-ga-16002116Complaints and ratings (Slide 9): http://www.cardpaymentoptions.com/credit-card-processors/global-payments-inc-review-complaints-and-rating/Stock market and financial information (Slide 13 & 14): http://www.marketwatch.com/investing/stock/gpnIndustry News/Global Payments buying gaming business (Slide 11): http://www.bizjournals.com/atlanta/news/2014/09/30/global-payments-buys-fis-gaming-business.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+vertical_42+(Internet+Industry+News)Gambling Kiosk Offerings (Slide 11): http://www.businesswire.com/news/home/20140929006004/en/Global-Payments-Gaming-Service-Announces-Kiosk-Offerings#.VCw7UfldU7kNAMS (slide 6): http://www.namerchantservices.com

Sources continued...Yahoo Finance- Gaming (Slide 10):http://finance.yahoo.com/news/global-payments-acquire-fis-gaming-200500338.htmlThomson Reuters Summary (Slide 3 & 12): http://www.reuters.com/finance/stocks/companyProfile?rpc=66&symbol=GPN First Data Review (Slides 15 & 16): http://www.merchantmaverick.com/reviews/first-data-review/ Global Payments’s 2014 Annual Report (Slides 5, 7, 8, 11 & 12): http://files.shareholder.com/downloads/AMDA-1JAKGZ/3654813206x0x783581/B59CB420-6826-4584-BA5F-C618DA6C335C/Final_ARS_--_Bookmarked.pdfCustomer Segments and Channels: (slide 6 & 7): https://investors.globalpaymentsinc.com/annuals-proxies.cfmCurrency Conversion- Key Partners (Slide 10 ): http://globenewswire.com/news-release/2014/11/05/680044/10106303/en/Global-Payments-and-Planet-Payment-Announce-a-Dynamic-Currency-Conversion-Hospitality-Solution-in-Canada.html

Questions?