Business Model Canvas Analysis of Littlepay: A Detailed Report

This report provides a detailed business model canvas analysis of Littlepay, a financial organization specializing in contactless payment solutions for buses. The analysis deconstructs Littlepay's business model, examining its nine building blocks: customer segments, key partners, value proposition, key activities, channels, revenue streams, cost structure, key resources, and customer relationships. The report explores the interrelationships between these blocks and identifies critical success factors, such as customer analysis and effective partnerships. It also addresses potential downside risks, like financial instability and the costs associated with implementing contactless payment systems. Furthermore, the report suggests potential business model changes and offers recommendations for Littlepay to improve its operations, including reducing operating costs and enhancing financial partnerships. The analysis is supported by relevant references and appendices, providing a comprehensive overview of Littlepay's business strategy and sustainability.

Running head: BUSINESS MODEL CANVAS ANALYSIS OF LITTLEPAY
BUSINESS MODEL CANVAS ANALYSIS OF LITTLEPAY
Name of the Student
Name of the University
Author Note

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BUSINESS MODEL CANVAS ANALYSIS OF LITTLEPAY
Executive Summary
The report is based on the detailed study of the deconstructed business model canvas of an
innovative firm named Littlepay that mainly offers contactless payment services in the
different buses. The analysis of the nine building blocks has been able to depict that the
organization has been successful in maintaining its position in the industry with the help of its
innovative services that are offered by Littlepay. The interrelationships that have been formed
between the nine building blocks have been discussed along with the risks that are faced by
the organization as well. The analysis also has been able depict the critical success factors
that have an influence on the operations of Littlepay.

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BUSINESS MODEL CANVAS ANALYSIS OF LITTLEPAY
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.................................................................................................................4
6. Revenue streams.....................................................................................................5
7. Cost structure.........................................................................................................5
8. Key resources.........................................................................................................5
9. Customer relationships...........................................................................................5
B. Interrelationships.......................................................................................................6
C. Critical success factors..............................................................................................6
D. Downside risks..........................................................................................................6
E. Business model changes............................................................................................7
III. Conclusion................................................................................................................7
IV. Recommendations....................................................................................................7
References......................................................................................................................8
Appendices...................................................................................................................10
Appendix 1 – Table 1 – Business model canvas of Littlepay..................................10
Appendix 2 – Table 2 – Team of Littlepay..............................................................11

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BUSINESS MODEL CANVAS ANALYSIS OF LITTLEPAY
I. Introduction
Littlepay is a financial organization that was that had started its operations in the year
2016 for the purpose of tackling the different issues which are related to the huge collection
of the cash and lack of various alternatives which can be used by the consumers. A mass
transit transaction based solution had been developed in the UK for greater than 300 buses.
Littlepay also aims at offering mass transit related solutions which are mainly provided by the
organization with the help of around 10000 buses that operate in various areas of the UK and
Ireland (Littlepay.com. 2019). The company has also been able to gain a huge back up from
the global investment based firm in order to develop its operations.
II. Business model
Littlepay has been able to form a business model which is able to enhance the mass
transit based solutions that are offered to the buses which operate in London. The payment
based methods that are offered to the consumers of Littlepay are revolutionized in an
effective manner for the purpose of enhancing the levels of services that are offered to them.
Transit based payments of the consumers have also made easy by the services offered by
Littlepay (Erlyana & Hartono, 2017).
A. Building blocks
1. Customer segments
The small and the medium companies are considered to be important customer
segments of a firm like Littlepay. The payments are mainly provided by customers through
Littlepay for the bus travels that are made by them on a regular basis. The organizations and
various owners of the bus have been able to become the most important customers of the
firm.

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BUSINESS MODEL CANVAS ANALYSIS OF LITTLEPAY
2. Key partners
The different bus organizations aim at using Littlepay for the purpose of fulfilling the
payment system based needs. The financial institutions that provide support to the
investments by Littlepay are also considered to be key partners of the organization. Littlepay
has also been able to develop a highly efficient management team that has led to the
formation of effective services and partnerships by the firm. The partners have also been able
to support the growth related activities of the organization in an effective way (França et al.,
2017).
3. Value proposition
Littlepay has been able to form an effective value proposition that is mainly related to
the development simple payment related methods for the purpose of enhancing travel
experiences in an effective manner. The company has also formed a highly efficient
ecosystem that is related to the proper acceptance of payments that are provided by
customers. New technologies are mainly developed and implemented by Littlepay in order to
enhance its value proposition (García-Muiña et al., 2020).
4. Key activities
The main activities that are related to the operations of Littlepay mainly include the
smart payment based options that can be used by the consumers. The contactless payment
based options that are provided by Littlepay has enhanced the travel activities of the users in
an effective manner. The platform of Littlepay is considered to be easy and safe and is able to
attract huge number of users towards the firm (Gonçalves & da Silva, 2017).
5. Channels
Littlepay has been able to form an effective channel which is helpful for the
organization to the reach the customers and enhance their service levels as well. Systems

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BUSINESS MODEL CANVAS ANALYSIS OF LITTLEPAY
which had been used by Littlepay are loosely coupled in nature and customer analysis is
considered to be the most effective part of the operations of the firm. The company has been
able to customise its services its products with respect to the demands of the consumers.
6. Revenue streams
Littlepay has been able to develop a stable revenue stream with the help of
partnerships that are formed with the bus organizations in the country. The commissions that
are gained by the company from its partners is able to play a key part in enhancing operations
of Littlepay in an effective manner (Joyce & Paquin, 2016).
7. Cost structure
The license fees that has to be paid and maintained by Littlepay is considered to be an
important part of the cost structure of the organization. The services and facilities that the
organization aims at offering with the help of its app or website are also based on the levels
of costs that are incurred in the process. Major levels of costs have to be incurred by the
organization for the purpose of developing the security systems for the consumers. The
promotional and advertising based activities that are performed by the firm are also
considered to be major parts of the cost structure of Littlepay (Keane, Cormican & Sheahan,
2018).
8. Key resources
The effective infrastructure of Littlepay is considered to be major resource that is
gained by the organization and the platform that is offered to the firms. The employees and
team of Littlepay are able to play a key part in enhancing the services that are offered to the
consumers. Touch less facilities offered by Littlepay are also based on the support provided
by the employees of Littlepay (Stenn, 2017).

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BUSINESS MODEL CANVAS ANALYSIS OF LITTLEPAY
9. Customer relationships
Littlepay is considered to be highly successful in proper development of the
relationships with consumers and the partner organizations through the different social media
platforms of the organization. Payment options that are created by the organization are also
based on the preference levels of the consumers and their demands as well (Micieta et al.,
2020).
B. Interrelationships
The different building blocks of the business model canvas of Littlepay are
interrelated with each other in an effective manner. Littlepay has been supported by the
partners for the purpose of proper formation of the relationships with the customers. Revenue
streams of Littlepay have been influenced by the support offered by financial institutions. The
development of infrastructure of Littlepay is also related to the cost based structure that has to
be maintained by the firm. Various partner companies are also able to offer the important
levels of contribution based on the revenues that have been gained by Littlepay (Murray &
Scuotto, 2016).
C. Critical success factors
Littlepay has aimed at implementing the customer analysis methods for the purpose of
understanding their demands and needs and levels of success gained in the industry as well.
Website and app of Littlepay has been able to play a key role in the success that is gained by
the firm in the industry. Effective collaboration with the partners has been able to enhance the
effectiveness of the platform of Littlepay (Onken & Campeau, 2016).
D. Downside risks
Littlepay has faced major levels of risks related to effective operations of Littlepay
and reduction of proper financial support provided by the financial institutions. Littlepay will

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BUSINESS MODEL CANVAS ANALYSIS OF LITTLEPAY
be able to maintain its processes in the industry with respect to the profitability levels in the
industry. However, the levels of costs that are faced by Littlepay are considered to be major
risks faced by the organization in the financial industry. The proper implementation of
processes of touch less payment is also based on major levels of costs that have to be incurred
by the firm (Murray & Scuotto, 2016).
E. Business model changes
Littlepay can aim the implementation of changes in the business model for the
purpose of attracting the consumers towards the firm. The organization has to enhance the
levels of investments that are made on the proper development of the effectiveness and
efficiency of the platform as well. Promotional activities of the organization also have to be
enhanced for the purpose of increasing awareness related to the services that are offered by
the organization to its consumers (Woo et al., 2016).
III. Conclusion
The report can be settled by stating that an organization Littlepay has been able to
develop and implement innovative solutions for improvement of its platform. Littlepay has
also been able to offer the contactless facilities in order to enhance the number of clients or
consumers who can be a major part of the organizational operations. The organization will
be successful in maintaining its current operations in the industry with the support that is
mainly provided by the improvement of service quality and enhancement of customer base as
well.
IV. Recommendations
The major levels of recommendations that can suggested to Littlepay for
improvement of its future operations are as follows,

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BUSINESS MODEL CANVAS ANALYSIS OF LITTLEPAY
The operating costs that are faced by contactless facilities of Littlepay have to
be reduced for the purpose of enhancing the number of partners.
The organization has to enhance the financial partnerships for the purpose of
improving the operations and levels of services that are offered to the
consumers.

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BUSINESS MODEL CANVAS ANALYSIS OF LITTLEPAY
References
Erlyana, Y., & Hartono, H. (2017, December). Business model in marketplace industry using
business model canvas approach: An e-commerce case study. In IOP Conference
Series: Materials Science and Engineering (Vol. 277, No. 1, p. 012066). IOP
Publishing.
França, C. L., Broman, G., Robert, K. H., Basile, G., & Trygg, L. (2017). An approach to
business model innovation and design for strategic sustainable development. Journal
of Cleaner Production, 140, 155-166.
García-Muiña, F. E., Medina-Salgado, M. S., Ferrari, A. M., & Cucchi, M. (2020).
Sustainability Transition in Industry 4.0 and Smart Manufacturing with the Triple-
Layered Business Model Canvas. Sustainability, 12(6), 2364.
Gonçalves, R. F., & da Silva, M. T. (2017, March). System Thinking and Business Model
Canvas for Collaborative Business Models Design. In Advances in Production
Management Systems. Initiatives for a Sustainable World: IFIP WG 5.7 International
Conference, APMS 2016, Iguassu Falls, Brazil, September 3-7, 2016, Revised
Selected Papers (Vol. 488, p. 461). Springer.
Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design
more sustainable business models. Journal of cleaner production, 135, 1474-1486.
Keane, S. F., Cormican, K. T., & Sheahan, J. N. (2018). Comparing how entrepreneurs and
managers represent the elements of the business model canvas. Journal of Business
Venturing Insights, 9, 65-74.
Littlepay.com. (2019). Company. Retrieved from https://littlepay.com/company/

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BUSINESS MODEL CANVAS ANALYSIS OF LITTLEPAY
Micieta, B., Fusko, M., Binasova, V., & Furmannova, B. (2020). Business model canvas in
global enterprises. In SHS Web of Conferences (Vol. 74, p. 02010). EDP Sciences.
Murray, A., & Scuotto, V. (2016). The business model canvas. Symphonya. Emerging Issues
in Management, (3), 94-109.
Onken, M., & Campeau, D. (2016). Lean startups: Using the business model canvas. Journal
of Case Studies, 34(1), 95-101.
Stenn, T. L. (2017). Focus on the business model canvas. In Social entrepreneurship as
sustainable development (pp. 55-89). Palgrave Macmillan, Cham.
Woo, C. R., Cho, M. J., Choi, H. R., Lee, K. B., & Kim, D. H. (2016). The Business Model
for the Sharing Economy between SMEs based on Business Model Canvas. Journal of
the Korea Industrial Information Systems Research, 21(5), 41-54.

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BUSINESS MODEL CANVAS ANALYSIS OF LITTLEPAY
Appendices
Appendix 1 – Table 1 – Business model canvas of Littlepay
Key Partners
 Bus
organizatio
ns that use
the
platform.
 Manageme
nt team of
Littlepay.
Key Activities
 Providing
touchless
payment
facilities.
 Safe platform
for payment.
Value Proposition
 Integration
of innovation
in the
payment
based
activities.
 Development
of an
effective
ecosystem.
Customer
Relationships
 Interaction
with the
help of its
website.
Customer
Segments
 Bus
organizatio
ns.
 Passengers.
Key Resources
 Management
team.
 Innovative
solutions.
Channels
 Loosely
coupled
systems.
 Powerful
analysis of
the process.
Cost Structure
 Maintenance of license based on financial
transactions.
 Management of security.
Revenue Streams
 Payment based on development of the
platform.
 Passenger based income.
Source – Created by Author

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BUSINESS MODEL CANVAS ANALYSIS OF LITTLEPAY
Appendix 2 – Table 2 – Team of Littlepay
Source - (Littlepay.com., 2019)