Analyzing the Business Model Canvas of Littlepay Company
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This report analyzes the business model canvas of Littlepay Company, a fintech organization, and provides recommendations for improvement. The report discusses the nine building blocks of the company's business model, downside risks, and interrelationships. It also highlights critical success factors and suggests changes to the business model.
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Running head: MANAGEMENT Management Name of the Student Name of the University Author note
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1 MANAGEMENT Executive Summary The report has thrown light on analyzing the business model canvas model of Littlepay Company which is a fintech organization. The proper analysis of the nine building blocks of the company has been described which provided a brief overview of the overall efficiency of the organization in comparison to the other competitors. Moreover, the downside risks have been analyzed along with the recommendations have been provided that can be helpful for Littlepay in performing better in the future which is described as follows: ï‚·The respective organization needs to be more customer-centric in approach which will be beneficial for them in gaining competitiveness ï‚·Moreover, the services are required to be localized which will be helpful for the overall growth of the company
2 MANAGEMENT Table of Contents I. Introduction..................................................................................................................................3 II. Business model...........................................................................................................................3 A. Building blocks.......................................................................................................................3 1. Customer segments..............................................................................................................3 2. Key partners.........................................................................................................................4 3. Value proposition.................................................................................................................4 4. Key activities.......................................................................................................................4 5. Channels..............................................................................................................................5 6. Revenue streams..................................................................................................................5 7. Cost structure.......................................................................................................................5 8. Key resources.......................................................................................................................5 9. Customer relationships........................................................................................................6 B. Interrelationships.....................................................................................................................6 C. Critical success factors............................................................................................................7 D. Downside risks........................................................................................................................7 E. Business model changes..........................................................................................................8 III. Conclusion.................................................................................................................................8 IV. Recommendations.....................................................................................................................8 Appendix 1- Table 1- Business Model Canvas of Littlepay..........................................................10
3 MANAGEMENT Appendix 2- Table 2- Methods Used by Fintech Company..........................................................11 References......................................................................................................................................12
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4 MANAGEMENT I. Introduction Littlepay is one of the FinTech startups which mainly focused on the development of the micropayment processing services. The company has been able to create a versatile open loop platform for payment which can be appropriately adopted by the different kinds of organizations in the industry applications (Littlepay.com, 2019). Moreover, the respective platform helps the various transport authorities, service providers along with operators to accept the different open payments quickly and the company was founded in the year 2016. The primary motive of the company was to tackle the different problem related to high cash collection costs along with the lack of different compelling alternatives. II. Business model The respective company is one of the financial service related organization which helps in providing end to end payment processing platform which helps in adapting to the needs along with giving transit along with mobility operators and passengers a smoother ride without any worries. A. Building blocks The nine building blocks of the business canvas model will be discussed in the next sections which will be beneficial in understanding the different aspects which are followed by the business in an appropriate manner (Bleicher and stanley, 2016). 1. Customer segments The major customer segments of the respective organization are inclusive of the different merchants as well as the different business organizations which will be helpful in improving and
5 MANAGEMENT enhancing the various business operations by providing them with successful business solutions. Moreover, the internet users are the other significant segment of customers who will be the primary source of delivering business to Littlepay which will be beneficial for them in gaining competitiveness in comparison to the other competitors (Joyce & Paquin, 2016). It offers the multi-sided platformto the different customers who will help serve the diverse needs of the various other organizations. 2. Key partners The key partners of the respective organization Littlepay are the third-party providers along with payment providers. The core activity of the organization is to focus on the buyer and supplierrelationshipsthroughstrategicalliancesanditwillbehelpfulfor thebusiness operations to become successful. 3. Value proposition The significant value proposition of the company is to provide the different customers with the secure platform the multi-currency transactions which will prove to be one of the most relevant positive aspects which can differentiate them from the competitors. The main focus is qualitativeas they want to provide an overall positive experience to the different customers. 4. Key activities Theprimarycriticalactivitiesofthecompanyareinclusiveoftheresearchand development programs along with the security in the various transactions which are done by the different individuals. The research and development activities which are performed by the organization are effective, and payment provider is exceptionally efficient, and it will be beneficial for the different customers as well as companies for using the digital wallets.
6 MANAGEMENT 5. Channels The official website of the organization Littlepay is one of the most appropriate aspects which helps them in establishing initially with the different mobile providers (Tzu, 2018). There can be different discounts as well as offers while the customers use the particular Littlepay option which assists the company in gaining competitive advantage. 6. Revenue streams There are different models of revenue which can be grouped in two major classes such as it tries to make different commissions on the various transactions which are used by the customers and it is generally paid to the different vendors and not to the customers directly (Dijkman et al., 2015). The other revenue aspect which is being used by Littlepay is inclusive of escrow accounts, it will be offering the different customers with no interest, and it is useful in appropriately managing the various options. 7. Cost structure The Littlepay is cost driven, and the respective aspects are designed in such a manner which helps in serving the customers at zero marginal costs (Schaltegger, Hansen &Lüdeke- Freund, 2017). The other costs which are included in the different transactions and the payment which is done by Littlepay is inclusive of costs related to security which helps them in avoiding money laundering. 8. Key resources The significant and critical resources of the Littlepay is inclusive of the license along with the software culture which deals in designing the different applications and it is easy for the various users to use the same appropriately (Saebi & Foss, 2015). Moreover, the Littlepay
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8 MANAGEMENT The customer relationships play a significant role by providing them with an automated platform which will help manage the overall profitability in comparison to the other competitors present in the market (Kasemsap, 2016). The vendors and the normal customers are the segments who should be considered by the company which will be beneficial in managing usability more appropriately. The revenue and cost streams play a significant role in the organization as there are differentcommissionsandtheinfrastructureiscostdrivenwhichwillbebeneficialin successfully managing the various operations (Pisano, 2015). C. Critical success factors The primary essential elements of success of Littlepay which can be helpful for them in going ahead of the other competitors present in the market are inclusive of the following: Thefeet on the street approachis one of the most appropriate factors which can be considered as it has become one of the most appropriate digital payments partner and the payment and the other financing activities are done within a few clicks and seconds (Massa, Tucci & Afuah, 2017). Thesecurity and compliance are the other critical success factorswhich will be beneficial for Littlepay in managing their demand in comparison to the other competitors present in the market (Bleicher and Stanley 2016). Through providing an automated platform with high security are the other aspects which help them in becoming more convenient in managing the payment appropriately.
9 MANAGEMENT D. Downside risks There are different issues related to security as it is one of the online platforms and the security issues have been one of the most challenging aspects that can affect the growth of Littlepay. The Littlepay element is vulnerable to security as well as fraud risks, and there can be a different negative brand image of the firm. Moreover, there is no such option of the update of the application and the services which are provided by Littlepay, and it can affect the brand image of the firm in comparison to the other competitors. E. Business model changes Firstly, there should be the increase in the different kinds of improvement in the channels of communication which will be helpful for them in communicating with customers and gain competitive advantage (Lüdeke-Freund et al., 2019). There can be an introduction of the different resources as it will be beneficial in designing the services in a more user-friendly manner. Moreover, there can increase the overall awareness among the different individuals in entire Australia and make them understand the usage of the applications provided by them (Lüdeke-Freund & Dembek, 2019). III. Conclusion Therefore,itcanbeconcludedthatLittlepayhasbeensuccessfulinsuccessfully managing different business operations. There are few risks such as security breaches which can be solved by increasing the security-related aspects and it will be helpful for Littlepay in improving brand image.
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10 MANAGEMENT IV. Recommendations Therefore, it can be recommended that the different aspects which can be changed in Littlepay as it will be helpful for the growth of the company are as follows: ï‚·Littlepay needs to become more customer-centric through the inclusion of the security approaches (Mian, Lamine & Fayolle, 2016) ï‚·Localization of the services is the other aspect which should be followed by Littlepay as it will help improve the facilities and it can help gain competition (Taneja, Pryor & Hayek, 2016)
12 MANAGEMENT Lüdeke-Freund, F., & Dembek, K. (2017). Sustainable business model research and practice: Emerging field or passing fancy?.Journal of cleaner production,168, 1668-1678. Lüdeke-Freund, F., Bohnsack, R., Breuer, H., & Massa, L. (2019). Research on Sustainable Business Model Patterns: Status quo, Methodological Issues, and a Research Agenda. InSustainable Business Models(pp. 25-60). Palgrave Macmillan, Cham. Massa,L.,Tucci,C.L.,& Afuah,A. (2017).Acriticalassessmentof businessmodel research.Academy of Management Annals,11(1), 73-104. Mian, S., Lamine, W., & Fayolle, A. (2016). Technology Business Incubation: An overview of the state of knowledge.Technovation,50, 1-12. Parrilli, M. D., & Fitjar, R. D. (2016). Innovation Drivers and Regional Innovation Strategies: TerritorialandBusinessInsights.InInnovationDriversandRegionalInnovation Strategies(pp. 17-36). Routledge. Pedersen,E.R.G.,&Netter,S.(2015).Collaborativeconsumption:businessmodel opportunitiesand barriersfor fashion libraries.Journal of FashionMarketingand Management,19(3), 258-273. Pisano, G. P. (2015). You need an innovation strategy.Harvard Business Review,93(6), 44-54. Prajogo, D. I. (2016). The strategic fit between innovation strategies and business environment in delivering business performance.International Journal of Production Economics,171, 241-249.
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13 MANAGEMENT Saebi, T., & Foss, N. J. (2015). Business models for open innovation: Matching heterogeneous open innovation strategies with business model dimensions. European Management Journal, 33(3), 201-213. Schaltegger, S., Hansen, E. G., & Lüdeke-Freund, F. (2016). Business models for sustainability: Origins, present research, and future avenues. Taneja, S., Pryor, M. G., & Hayek, M. (2016). Leaping innovation barriers to small business longevity.Journal of Business Strategy,37(3), 44-51. Tzu, S. (2018). Winning the Competition.Business Innovation and ICT Strategies, 313.
14 MANAGEMENT Appendix 1- Table 1- Business Model Canvas of Littlepay Key Partners Vendors Providers ofthe payment Key Activities Compliance and security Usabilityof the platform Value Propositions Secured payment platform for the different customers Customer Relationshi ps Automatedkind ofplatformfor thedifferent individuals Custom er Segments Vendors The different financial institutions Key Resources Proper licensing Usabilityof therelated financial services Channel s Websiteand offline marketing Vendorand client sites Cost Structure Infrastructure is cost driven in nature Revenue Streams Commissions
15 MANAGEMENT (Source: Created by author) Appendix 2- Table 2- Methods Used by Fintech Company (Source:Littlepay.com, 2019)