Business Analysis of First Data

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of First Data

FIRST DATA

Business Overview

First Data Corporation is a provider of commerce-enabling technology and solutions for merchants, financial institutions and card issuers. The Company's segments are Global Business Solutions (GBS), Global Financial Solutions (GFS), Network & Security Solutions (NSS), and Corporate. The GBS segment provides businesses of all sizes and types with a range of solutions at the point of sale, including merchant acquiring, e-commerce, mobile commerce, point-of-sale, and other business solutions. The GFS segment provides financial institutions, which include bank and non-bank issuers, such as retailers with card portfolios, with a range of solutions that enable them to offer financial products and solutions to their customers. The NSS segment provides a range of network solutions and security, risk and fraud management solutions to business and financial institution clients in its GBS and GFS segments, and to financial institutions, businesses, governments, processors and other clients.

First Data

First Data


R&P Rank: 248
Sector: Financial Services
Industry:Payment and Transaction Processing Services
H.Q Location:New York
Website: www.firstdata.com
Company Address:
225 LIBERTY STREET, 29TH FLOOR, NEW YORK NY 10281
Ph:800-735-3362

Business Analysis of First Data

The Financial Services Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how First Data compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by First Data to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of First Data with an interactive chart.

  1. Revenue Growth: First Data reported a revenue growth of 1.2% year-on-year during 2016. Payment and Transaction Processing Services Industry grew at 14.6% in the same period
  2. COGS share of Revenues: As a percentage of revenue, First Data spent 27.6% of its total revenues on COGS. Payment and Transaction Processing Services industry average (COGS share of revenue) in the same period was 50.7%
  3. R&D share of Revenues: First Data R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, First Data spent 17.6% of its total revenues on Sales, Marketing, and General Administration (SG&A). Payment and Transaction Processing Services industry average SG&A spending in the same period was 20.9%
  5. Inventory share of Revenues: First Data Inventory share of Revenues details are not available because either company does not share the data or we do not have it
  6. Accounts Payable share of Revenues: As a percentage of revenue, First Data invested 13.5% of its total revenues on Accounts Payable (A/P) Payment and Transaction Processing Services industry average Accounts Payable investment in the same period was 17.4%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, First Data invested 16.2% of its total revenues on Accounts Receivable (A/R). Payment and Transaction Processing Services industry average Accounts Receivable investment in the same period was 17.6%
  8. PP&E share of Revenues: As a percentage of revenue, First Data invested 7.6% of its total revenues on Property, Plants, and Equipments (PP&E). Payment and Transaction Processing Services industry average PPE investment in the same period was 8.3%
  9. Intangibles share of Revenues: As a percentage of revenue, First Data invested 174.7% of its total revenues on Intangibles. Payment and Transaction Processing Services industry average Intangibles investment in the same period was 154.3%
  10. Net Margins: First Data Net Margins in the year 2016 were 3.6%. Payment and Transaction Processing Services industry average Net Margins in the same period were 6.6%

Sector and Industry Association of First Data

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

First Data is associated with Financials Sector Group, Financial Services Sector, and Payment and Transaction Processing Services Industry.

Financial Services sector is comprised of the following industries: Investment Services; Consumer Finance; Payment and Transaction Processing Services; Financial News, Research and Data. The definitions for each of the industries is as follows:

  • Investment Services industry includes investment banking companies, asset management companies, securities brokers and dealers, online brokers, and security/commodity exchanges.
  • Consumer Finance industry includes companies providing credit services and mortgage finance services.
  • Payment and Transaction Processing Services industry includes companies providing financial news, research, and data services.
  • Financial News, Research and Data industry includes companies providing payments and transaction processing services.

Industry Ranking of First Data

With $11.6 billion revenues, First Data ranked number 1 of all the companies in the US Payment and Transaction Processing Services industry. There were a total of 13 public companies in the US Payment and Transaction Processing Services industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Payment and Transaction Processing Services industry by revenues during 2016 were:

  1. First Data ($11.6 billion)
  2. FIS ($9.2 billion)
  3. Fiserv ($5.5 billion)
  4. TSYS ($4.2 billion)
  5. Vantiv ($3.6 billion)
  6. Global Payments ($2.9 billion)
  7. VeriFone Systems ($2 billion)
  8. Euronet Worldwide ($2 billion)
  9. Square ($1.7 billion)
  10. Net 1 UEPS ($590.7 million)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of First Dataand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of first-data

FIS (FIS) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Fidelity National Information Services, Inc. with $9 billion revenues in the year 2016 was the number 2 Payment and Transaction Processing Services company. Read this report to know the top competitors of FIS and identify growth and cost optimization opportunities of FIS

Fiserv (FISV) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Fiserv Inc with $6 billion revenues in the year 2016 was the number 3 Payment and Transaction Processing Services company. Read this report to know the top competitors of Fiserv and identify growth and cost optimization opportunities of Fiserv

TSYS (TSS) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Total System Services Inc with $4 billion revenues in the year 2016 was the number 4 Payment and Transaction Processing Services company. Read this report to know the top competitors of TSYS and identify growth and cost optimization opportunities of TSYS

Vantiv (VNTV) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Vantiv, Inc. with $4 billion revenues in the year 2016 was the number 5 Payment and Transaction Processing Services company. Read this report to know the top competitors of Vantiv and identify growth and cost optimization opportunities of Vantiv

Global Payments (GPN) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Global Payments Inc with $3 billion revenues in the year 2016 was the number 6 Payment and Transaction Processing Services company. Read this report to know the top competitors of Global Payments and identify growth and cost optimization opportunities of Global Payments

VeriFone Systems (PAY) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

VeriFone Systems, Inc. with $2 billion revenues in the year 2016 was the number 7 Payment and Transaction Processing Services company. Read this report to know the top competitors of VeriFone Systems and identify growth and cost optimization opportunities of VeriFone Systems

Revenues Analysis

First Data (FDC) Revenues And Revenue Growth From 2013 To 2016

This report provides the last four years revenues and revenue growth of First Data Corp (FDC) from 2013 to 2016. First Data generated a total of $11.6 billion revenues during 2016. First Data reported a revenue growth of 1.2% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

First Data (FDC) Revenues And Revenue Growth From 2013 To 2016

This report provides the last four years revenues and revenue growth of First Data Corp (FDC) from 2013 to 2016. First Data generated a total of $11.6 billion revenues during 2016. First Data reported a revenue growth of 1.2% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

First Data (FDC) Revenue Growth Comparison With Industry Growth From 2014...

This report provides a comparison of First Data Corp (FDC) revenue growth with Payment and Transaction Processing Services industry growth during the last three years from 2014 to 2016. First Data reported a revenue growth of 1.2% year-over-year during 2016. The Payment and Transaction Processing Services industry growth was 14.6% year-over-year during 2016. First Data growth was slower than the industry during 2016.

Profit Analysis

First Data (FDC) Net Profit And Net Margin From 2015 To...

This report provides the last two years net profit and net margin of First Data Corp (FDC) from 2015 to 2016. First Data reported a total net income of $420 million during 2016. First Data generated a total of $11.6 billion revenues during 2016. First Data net profit margin was 3.6% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.

First Data (FDC) Net Profit And Net Margin From 2013 To...

This report provides the last four years net profit and net margin of First Data Corp (FDC) from 2013 to 2016. First Data reported a total net income of $420 million during 2016. First Data generated a t