In particular, we will keep an eye on the relationship between Worldline and its parent company Atos.
Among the French stocks that you can trade online through your bank or trading platforms is the stock of Worldline. In this article, we will take a closer look at this stock by studying all the information about this company such as its activities in detail, its main competitors, its recent partnerships and strategic alliances or its strengths and weaknesses to help you set up your fundamental analysis.
In particular, we will keep an eye on the relationship between Worldline and its parent company Atos.
The strategy implemented by the group in terms of sales growth, operating margin improvement or free cash flow is also an element to be taken into account.
Of course, as mentioned above, the establishment of various strategic alliances and partnerships with other companies or large groups should be given your full attention.
We will also follow with great interest the next major acquisitions that the group is likely to make in Northern and Central Europe, as well as rumours of mergers with other companies and the fallout from past alliances.
The technological innovations developed by Worldline are of course essential to follow, as are the company's investments in research and development.
Finally, we will also take into account the very strong competition in this sector of activity by closely following the various news of the companies we have mentioned above as well as the evolution of the market shares of each of these players on the European market.
First of all, and before we take a closer look at Worldline's environment, let's take a few moments to remind you of the company's activities and the sector in which it operates. This will allow you to better understand the challenges and development opportunities for the years to come.
The Worldline Group is a French company specialising in electronic payment and transactional services. More specifically, it is one of the leading companies in this sector in Europe. To better understand the activities of this group, it is possible to divide them into several categories according to the share of turnover they generate and in this way:
First of all, the activities carried out with banks and financial institutions are the most important for this company and represent 45.2% of total turnover. This includes issuing and managing credit and debit cards, acquiring and processing electronic payment transactions, providing online banking services, developing an electronic wallet solution and selling payment software.
Activities aimed at merchants and distributors account for almost 36.3% of the Worldline group's revenues. These include the acquisition of payment orders, the acceptance and management of online payments, the sale and rental of payment terminals, the sale of security modules for cryptographic purposes, the supply of private payment cards, sales promotion tools, self-service terminals and the management of loyalty programs.
Finally, the rest of the company's activities are targeted at companies and government entities, accounting for nearly 18.5% of its revenues. This includes the provision of electronic ticketing services for public transport and rail companies, the provision of automatic traffic and parking control solutions to authorities, the development of digital services for governments and public companies including the management of online tax collections, cryptographic archiving services, the collection and storage of biometric fingerprint data, the provision of digital shared medical information services and other such activities.
It is also interesting to know the distribution of this group's activities around the world. Indeed, Worldline generates only 23.1% of its revenues in France, 20.7% in Belgium, 11.3% in the Netherlands, 24.3% in the United Kingdom, Germany and Central and Eastern Europe and 10.9% in the rest of Europe. 9.7% of the turnover is generated internationally and outside Europe.
To go further and be able to detect the external elements likely to have an influence on the Worldline share price, you need to know the competition of this company on the e-payment systems market. Here are the main opponents to study in the framework of this analysis.
The Paypal group is of course a major competitor of Worldline. This subsidiary of the American group Ebay is indeed the international leader in this sector of activity with more than 120 million users and the second most used online payment method in France. The Paypal system allows users to create an account in which they register their bank details. They can then pay for purchases online without having to re-enter these details and simply by logging into their account. Of course, this company has never stopped developing its payment solutions in order to build customer loyalty and maintain its leading position.
Next comes the competitor Paybox, which is the number three in this business sector in France with more than 40,000 merchant customers and 120 million transactions per year. The Paybox System is compatible with all French banks and even 39 other European countries. For example, its solution allows e-commerce sites to offer their online buyers a dozen different bank cards to pay for their purchases.
The Ogone group is also one of the main online payment operators in Europe. This group operates in no less than 35 different countries and with 9,500 French customers. It has been operating in France since 2004 and has been recording a clear increase in the number of its merchant customers every year for several years now.
Finally, we will also keep an eye on the competitor Monext which is a subsidiary of Crédit Mutuel Arkéa since 2010. This group offers a platform called Payline which concerns more than 6,000 merchant customers, including large groups such as Pixmania, FDJ and Yves Rocher. In the same way as the Ogone group, the Monext group has greatly increased the number of its customers over the last few years, with the number of transactions also increasing. Today, more than two billion transactions are processed in France and Europe by this group.
Now that you know the main competitors of the Worldline group, we suggest you take a look at the main partners and recent allies of this company. The strategic alliances that this group is likely to put in place can have a strong influence on the share price.
In 2017 in particular, the Worldline Group was one of the first companies in the world to take part in the Visa Group's new Visa Ready for Transit program. This strategic alliance will indeed promote the growth of digital ticketing through the application of open payment technology to the transport market. Thanks to its long experience in the field of payment, Worldline has implemented a new generation digital ticketing platform that allows users to travel without having to buy a ticket. This solution, called Worldline WL Tap 2 Use, allows contactless cards, mobile devices and portable technology to be used to enter and exit public transport systems provided by operators or passenger transport authorities.
Later in 2018, Worldline's subsidiary equensWorldline joined forces with another big name in the European banking sector, namely the Commerzbank Group, a German banking and financial services company. Within the framework of this partnership, this subsidiary has obtained the possibility to process all SEPA, instant, multi-currency and domestic payments for Commerzbank for a period of 10 years. This partnership can be sealed in two stages and via a simple and fast transition. In the first step, equensWorldline and Atos will take over the management of the existing payment applications. Thanks to the combined expertise and experience of Atos and equensWorldline, Commerzbank will be able to move on to the second stage of this process, during which the majority of the applications will be replaced by the latest technologies of the equensWorldline platform, which are standardized, sustainable and shared. Among the new functionalities offered by this solution are instant payments. As a result of this migration, approximately 4 billion Commerzbank payment transactions will be processed annually by equensWorldline.
Finally, even more recently in 2019, the Worldline group, as the European leader in the payments and transactional services sector, presented, in partnership with its parent company, Atos, its latest innovations and solutions during MWC19, the annual meeting of the world's mobile players which took place in Barcelona from 25 to 28 February 2019. These innovative solutions include mobility, e-identity, new payment experience or mobile banking and solutions developed with blockchain with a common goal of making the customer journey simpler and optimizing it while securing transactions. Let's recall that MWC19 Barcelona is a real opportunity for Worldline to present the new high-end multifunctional terminal for retail environments, the YUMI. The YUMI is equipped with the Android operating system, which allows the development of applications to enhance the user experience. It is also equipped with a large, fully touch-sensitive screen and provides customers with a new way to interact with a wide range of applications that go far beyond simple payment.
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