IT infrastructure optimises WorldPay | Royal Bank of Scotland

New IT infrastructure optimises WorldPay

Highlights

  • £37m funding facility provides major investment transformation
  • Investment will help WorldPay optimise its performance
  • Lombard funding supports the delivery of double-digit growth
  • Finance lease provides flexibility and financial benefits

Leading payment services business builds IT platform to facilitate double-digit growth.

About WorldPay
In 2010 the Royal Bank of Scotland sold its global merchant acquiring business to the WorldPay group of companies. WorldPay remains one of the largest payment services businesses in the UK and Europe.

What did WorldPay want to achieve?
The challenge for WorldPay after the purchase of the Streamline business was to build the necessary IT platform, including IT infrastructure, to operate the Streamline business independently of Royal Bank of Scotland support services. This required WorldPay to invest in new IT infrastructure to support card processing activity for merchants.

How was Lombard able to help?
WorldPay initially considered using cash and bank debt to fund the required infrastructure but was keen to investigate the benefits of leasing. It became clear that leasing would provide specific VAT, corporation tax and group accounting benefits, and would also enable WorldPay to operate within its bank covenants.

The company considered proposals from several funding providers, including a technology supplier, before awarding the contract to Lombard. WorldPay’s decision was made not only on the basis of price but Lombard’s understanding of WorldPay’s needs. Furthermore, WorldPay wanted to work with a partner it could trust and valued Lombard’s openness during negotiations.

“We took the decision to work with Lombard because not only did they deliver on price, but they took the time to understand our business and its needs." Niall Hodson, VP Technology, WorldPay

The finance lease option gave WorldPay the most flexibility in terms of what it wanted to achieve. By taking the lease over a five-year term, it was able to fit the payments to the lifecycle of the key technology developments, while spreading the cost.

How has WorldPay benefitted?
The benefits of finance leasing enabled WorldPay to progress at pace with this large and complex IT project. This would not have been possible if the business had had to pay for the development upfront. To date, WorldPay has transacted £30m of IT capital investment from an agreed £37m Lombard facility.

Asset finance has helped WorldPay optimise its bank covenant without restricting its capital investment. It also provides financial and accounting benefits by enabling deferment of VAT payments and maximising its capital write down against taxable profits.

Having its own operating platform gives WorldPay greater control of its business, and enhances its customer proposition. WorldPay anticipates that it will deliver cost savings through standardisation of processes and also support double-digit growth across UK and international markets.

 

Highlights 
 
  • £37m funding facility provides major investment transformation
  • Investment will help WorldPay optimise its performance
  • Lombard funding supports the delivery of double-digit growth
  • Finance lease provides flexibility and financial benefits

Leading payment services business builds IT platform to facilitate double-digit growth.

 

About WorldPay

In 2010 the Royal Bank of Scotland sold its global merchant acquiring business to the WorldPay group of companies. WorldPay remains one of the largest payment services businesses in the UK and Europe.


What did WorldPay want to achieve?

The challenge for WorldPay after the purchase of the Streamline business was to build the necessary IT platform, including IT infrastructure, to operate the Streamline business independently of Royal Bank of Scotland support services. This required WorldPay to invest in new IT infrastructure to support card processing activity for merchants.


How was Lombard able to help?

WorldPay initially considered using cash and bank debt to fund the required infrastructure but was keen to investigate the benefits of leasing. It became clear that leasing would provide specific VAT, corporation tax and group accounting benefits, and would also enable WorldPay to operate within its bank covenants.


The company considered proposals from several funding providers, including a technology supplier, before awarding the contract to Lombard. WorldPay’s decision was made not only on the basis of price but Lombard’s understanding of WorldPay’s needs. Furthermore, WorldPay wanted to work with a partner it could trust and valued Lombard’s openness during negotiations.
“We took the decision to work with Lombard because not only did they deliver on price, but they took the time to understand our business and its needs"


Niall Hodson, VP Technology, WorldPay

The finance lease option gave WorldPay the most flexibility in terms of what it wanted to achieve. By taking the lease over a five-year term, it was able to fit the payments to the lifecycle of the key technology developments, while spreading the cost.

 

How has WorldPay benefitted?

The benefits of finance leasing enabled WorldPay to progress at pace with this large and complex IT project. This would not have been possible if the business had had to pay for the development upfront. To date, WorldPay has transacted £30m of IT capital investment from an agreed £37m Lombard facility.

Asset finance has helped WorldPay optimise its bank covenant without restricting its capital investment. It also provides financial and accounting benefits by enabling deferment of VAT payments and maximising its capital write down against taxable profits.

Having its own operating platform gives WorldPay greater control of its business, and enhances its customer proposition. WorldPay anticipates that it will deliver cost savings through standardisation of processes and also support double-digit growth across UK and international markets.

We took the decision to work with Lombard because not only did they deliver on price, but they took the time to understand our business and its needs.
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