WorldPay and AmEx recently announced a new partnership. This strategic partnership between American Express (AmEx), a US-based integrated payments company, and Worldpay, a leading provider of payment processing solutions, will enhance payment options for small businesses and increase their market share in the UK.
This enhanced collaboration is not just a business move but a strategic decision. It focuses on enabling seamless transactions for small businesses, especially in accommodating American Express card members. The agreement underscores American Express’s commitment to growing its UK market presence and increasing the availability of services to its card members, demonstrating its long-term vision and dedication to its stakeholders.
Key Takeaways
- Enhanced UK Market Reach: American Express and Worldpay’s new agreement aims to expand the number of UK venues accepting Amex cards, building on a 46% increase in locations from 2021 to 2023.
- Support for Small Businesses: Worldpay will provide small businesses with easier onboarding, streamlined settlement processes, and single-point service contact. This will not only encourage more businesses to accept Amex cards but also boost consumer spending, thereby enhancing the overall business performance.
- Increased Cardmember Spending: Amex Cardmembers, who spend significantly more annually and frequently than non-Cardmembers, will now have more locations to use their cards, aligning with American Express’s strategy to broaden its market presence. This will not only enhance the convenience for Cardmembers but also contribute to the growth of small businesses.
- Strategic Growth Amid Challenges: Despite the current challenges, American Express remains optimistic about the future of this partnership. They are confident in their long-term prospects and continue to invest in expanding merchant acceptance and enhancing customer experience. This is not just a short-term venture but a commitment to a strong and enduring partnership.
Worldpay and Amex Partnership to Expand Merchant Acceptance in the UK
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American Express has entered into a new agreement with payment solutions provider Worldpay to enhance its market reach in the UK. This partnership aims to increase the number of venues where Amex cardholders can purchase, following a 46% rise in Amex-accepting locations from 2021 to 2023.
As a trusted partner of American Express, Worldpay will provide further opportunities for small businesses to accept payments via American Express cards. This initiative is anticipated to boost consumer spending at small businesses and streamline their checkout processes.
Worldpay merchants will benefit from a more streamlined process, including a one-settling process that simplifies their financial management, an easier onboarding experience that reduces administrative burden, a sole point of contact for service that ensures prompt and efficient support, and a single statement for transaction reconciliation that enhances transparency and control.
Dan Edelman, VP and UK General Manager for Merchant Services at American Express, remarked that as their Cardmember base expands in the UK, they have been significantly increasing their merchant coverage. He noted that this new strategic agreement will further boost their efforts, enabling thousands of additional small businesses nationwide to benefit from accepting Amex cards. Edelman highlighted that Amex Cardmembers, on average, spend 3.9 times more annually and 3.2 times more frequently than non-Cardmembers.
The initiative reflects American Express’s broader strategic approach to expanding its market presence and increasing the number of locations where its cardmembers can use their cards.
American Express’s global presence has grown dramatically, as seen by the more than threefold increase in the number of locations that accept its cards since 2017.
Chris Wood, General Manager of SMB International and US Direct at Worldpay stated that they are delighted to offer more opportunities to their merchants in the UK and Ireland through their collaboration with American Express. This initiative taps into the spending power of loyal Amex card members. Wood emphasized that consumers desire the flexibility to pay as they prefer. By facilitating a broader range of payment options for their merchants, they are enhancing how they can serve their customers.
Worldpay, benefiting from its longstanding partnership with American Express, aims to assist merchants in expanding their payment options, ultimately helping them better serve their customers and grow their businesses. The goal is to make it easier for small businesses to accept American Express cards, thereby capturing more customer spend and enhancing the consumer payment experience.
The recent agreement is expected further to solidify the long-standing relationship between American Express and Worldpay. Although it still owns 45% of Worldpay, Fidelity National sold private equity funds run by GTCR, which is the majority of its share in Worldpay Merchant Solutions, earlier this year.
In its latest earnings report, American Express observed a slight slowdown in growth within its small-business segment, marking a minor setback in an otherwise robust performance. The company attributed this slowdown to higher interest rates and a decrease in payment volume, which are industry-wide challenges rather than to credit risk. Despite these challenges, Amex CEO Steve Squeri remains optimistic about the long-term prospects of small businesses amidst high inflation and slower economic growth.
About WorldPay
Worldpay International Group, formerly known as Vantiv UK Group, is a leading provider of payment processing solutions. The company enables its customers to execute and manage payments, optimize operations, control risks, and handle banking functions. It caters to a wide range of industries, including gaming, financial services, healthcare, government, retail, payment facilitators, and the petroleum sector. With its advanced payment processing technology and solutions, Worldpay is committed to leading developments in global expansion, data analytics, optimization, and integrated payments.
Worldpay is recognized globally for its advanced payment processing technology and solutions. Operating robust and secure platforms, the company facilitates accepting various payment types across multiple channels. With over 30 years of innovation in card payments, multi-currency processing, online transactions, and contactless technology, Worldpay is committed to leading developments in global expansion, data analytics, optimization, and integrated payments. On average, the company processes over 31 million mobile, online, and in-store transactions, equating to about 400 transactions per second.
About Amex
American Express is a global services company that offers a diverse array of products and services. These include charge and credit card offerings, expense management solutions, consumer and business travel services, and stored value products such as traveler’s cheques and other prepaid items.
Additionally, American Express provides network services, merchant acquisition, processing, servicing, and settlement, as well as point-of-sale, marketing, and information services tailored for merchants. The company also offers a range of fee services, which encompass market and trend analysis, consulting services, fraud prevention solutions, and the design of customized customer loyalty and rewards programs.
Conclusion
The enhanced partnership between American Express (AmEx) and Worldpay marks a significant step forward in facilitating smoother transactions for small businesses across the UK. This collaboration not only broadens the acceptance network for American Express Cardmembers but also promises a richer customer experience due to streamlined processes.
By integrating services such as a single statement for transactions, one settlement process, and an easier onboarding journey, the partnership aims to ease the operational burdens on small businesses, allowing them to focus more on growth and customer engagement. Furthermore, the strategic move is set to capitalize on the higher spending habits of AmEx cardholders, potentially boosting the revenue of small businesses. This initiative underscores a robust commitment from both American Express and Worldpay to enhance the commercial landscape for SMEs in the UK, offering them substantial support in a competitive market.
In a broader context, this agreement aligns with American Express’s global strategy to increase its footprint, ensuring that its card members enjoy extensive usability of their cards worldwide. This partnership not only strengthens the bond between American Express and Worldpay but also paves the way for future collaborative ventures that could further transform the payment ecosystem for small businesses.
