Business Model Canvas Analysis of Littlepay: A Comprehensive Report

This report provides a comprehensive analysis of Littlepay's Business Model Canvas. It begins with an executive summary and an introduction to Littlepay, a company specializing in contactless payment solutions for mass transit. The analysis delves into the nine building blocks of the business model, including customer segments, key partners, value propositions, key activities, channels, revenue streams, cost structure, key resources, and customer relationships. The report examines the interrelationships between these building blocks and identifies critical success factors and potential downside risks. Furthermore, it proposes changes to the business model, such as increasing partnerships and reducing operational costs. The conclusion summarizes the key findings, and recommendations are offered, including expanding partnerships and reducing operational costs to enhance Littlepay's success. The report uses the Business Model Canvas framework to provide a detailed and insightful examination of Littlepay's operations and strategic positioning.

Running head: BUSINESS MODEL CANVAS 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 related to the analysis of the business model canvas that has been developed by
an innovative organization in Australia. The company that has been taken into consideration
for analysis is Littlepay that has started its operations in the industry in the last few years. The
nine different building blocks of the organization have been analysed in the report in detail.
The relationships between various aspects of the business and risks related to its operations
are also an important part of the analysis that has been made in the report. The changes that
have been recommended in the business model include,
The increase in number of partners in order to develop effective financial back up.
Reduction of the costs of operations of contactless facilities.

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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...........................................................................................................3
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
Appendix 3 – Table 3 – Solutions provided by Littlepay........................................11

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BUSINESS MODEL CANVAS ANALYSIS OF LITTLEPAY
I. Introduction
Littlepay was established in the year 2016 in order to tackle different issues that are
based on high collection of cash and the lack of alternatives that are compelling in nature. A
contactless mass transit based transaction solution of payments was launched in Oxford,
United Kingdom in more than 300 buses. The mass transit based solutions that are offered by
Littlepay have been further deployed in more than 10,000 buses in different parts of Ireland
and the UK. The organization has been provided with a major back up by a global investment
based company. The offices of Littlepay are located in Melbourne, London and Geelong
(Littlepay.com., 2019).
II. Business model
The business model that has been developed by Littlepay is based on the strategy of
providing mass transit based solutions to the buses that operate in London. The major part of
the operations of Littlepay is based on the ways by which the payments methods of customers
can be revolutionized. The transit payments of customers have been made simple by the
organization (Augenstein, Fleig & Maedche, 2018).
A. Building blocks
1. Customer segments
The medium and small organizations are considered to be major customer segments
of Littlepay. The customers who provide their payments for their bus travels are an important
part of the services that are offered by Littlepay. The bus owners and organizations are the
most important customers of Littlepay (Cantamessa & Montagna, 2016).
2. Key partners
The companies that use the payment based services which are offered by Littlepay.
Different financial institutions that provide back up to Littlepay based on the ways by which

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BUSINESS MODEL CANVAS ANALYSIS OF LITTLEPAY
the company can improve its operations are its major partners. The management team of
Littlepay is able to provide an effective partnership to the organization. The key partners are
able to provide major growth opportunities to Littlepay. Oxford Bus Company is the major
partner of Littlpay in the industry (Cosenz & Noto, 2018).
3. Value proposition
The major value proposition of Littlepay is based on the ways by which easy and
simple payment based options can be provided to the customers who travel by buses in
London. The organization also aims at developing an effective ecosystem for accepting the
payments of customers. The development of new technologies is also considered to be a
major part of the value propositions that are offered by Littlepay (Ebel, Bretschneider &
Leimeister, 2016).
4. Key activities
The smart payment options that are offered by Littlepay are major activities that are
performed by the organization. Littlepay also provides contactless payment based options to
the passengers who travel by the buses of Oxford bus company. The safe and easy platform is
provided to the passengers with the help of the solutions that are provided by Littlepay
(Güemes-Castorena & Toro, 2015).
5. Channels
The major channel that has been developed by Littlepay in order to reach the
customers is the website of the organization that is able to provide effective information
based on different operations and offers. The systems that have been implemented by
Littlepay are considered to be loosely coupled and the analysis that is done based on
customers is also effective. The products and services that are provided by Littlepay are
configurable and can be customised according to the needs of customers (Heyes et al., 2018).

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BUSINESS MODEL CANVAS ANALYSIS OF LITTLEPAY
6. Revenue streams
The subscriptions that are made by different partner organizations are important
factors that have an impact on revenues that have been gained by Littlepay. The organization
also receives commissions from its partners based on the services that are offered to them
(Hoveskog et al., 2018).
7. Cost structure
Littlepay needs to maintain the license that is required for different financial
transactions. This is a major part of the cost structure that is formed by Littlepay. The
facilities which are provided through the website of Littlepay are based on high costs. The
security levels that are maintained by the organization in financial transactions also require
major investments by Littlepay. The advertising and promotional activities of Littlepay also
require effective investments (Li, Qiao & Wang, 2017).
8. Key resources
Littlepay has been successful in developing an infrastructure that is effective
providing an effective platform to the partners. The team of Littlepay is important for the
development of proper services and platform for application in the buses. The touchless
facilities can be provided with the help of the talent levels of the team of Littlepay (Manninen
et al., 2018).
9. Customer relationships
The organization has been successful in developing relationships with the customers
with the assistance that is provided by the social media based platforms and the website as
well. The options related to payment which have been created by Littlepay are related to the
preferences of the customers (Philipson, 2016).

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BUSINESS MODEL CANVAS ANALYSIS OF LITTLEPAY
B. Interrelationships
The business model canvas of Littlepay has been developed with the help of the
building blocks which have been discussed above. The partners of Littlepay are able to
support the organization in order to develop effective customer relationships. The support
that is provided by financial institutions is important for developing revenue streams
(Tweedie, Nielsen & Martinov‐Bennie, 2018). The cost based structure of the company is
mainly related to the development of a proper infrastructure that is developed by Littlepay.
The channels based on payment that have been formed by Littlepay are significant for the
customers of the organization. The partner organizations are able to provide the most
important contribution to revenues of Littlepay (Ebel, Bretschneider & Leimeister, 2016).
C. Critical success factors
The analysis based methods that have been implemented by Littlepay are considered
to be highly significant for the success that gas been gained in the industry. The website of
the organization is also interactive in nature and is able to support the ways by which
Littlepay is able to communicate with the customers in order to understand their needs and
demands in an effective manner (Augenstein, Fleig & Maedche, 2018). The company has
effectively collaborated with the partners and the customers in order to develop the ways by
which the platform for payment is provided to the employees. The team of Littlepay is an
important resource of the company and they work together in order to offer the best levels of
services to the consumers. The history of transactions is tracked by the organization in order
to develop the services that are offered with the help of its platform (Cosenz & Noto, 2018).
D. Downside risks
The risks that are faced by operations of Littlepay are based on the ways by which the
lack of proper finances can affect its future operations in the industry. The company has

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BUSINESS MODEL CANVAS ANALYSIS OF LITTLEPAY
started its operations quite recently in the industry and this is considered to be a major risk
based on the increase of its profitability levels. The costs that are based on implementation of
touchless facilities in the buses are also able to affect the revenues of the organization
(Güemes-Castorena & Toro, 2015).
E. Business model changes
The business model of Littlepay has been developed in such a manner that is able to
attract clients and customers towards its operations. However, the company has made quite
less amounts of investments on the ways by which the services or platforms can be improved.
Although the organization does not charge any upfront fees the costs related to the
implementation are quite high. The company needs to improve promotional activities and
expenses in order to increase the levels of awareness based on the innovative services that are
offered to the clients (Cantamessa & Montagna, 2016).
III. Conclusion
The report can be concluded by stating that Littlepay has developed its innovative
solutions in order to offer its platform to the buses. The contactless facilities that are provided
by the organization are considered to be highly important for the ways by which Littlepay can
gain more number of clients. The changes that have been suggested in the business model of
Littlepay will have an impact on the development of a client base of the organization.
IV. Recommendations
The recommendations that can be offered to Littlepay are as follows,
The costs based on the operations of contactless facilities of Littlepay can be
reduced in order to increase the adoption of services by bus organizations.
The company needs to gain more partners in order to increase the financial
back up that can be provided to Littlepay.

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BUSINESS MODEL CANVAS ANALYSIS OF LITTLEPAY
References
Augenstein, D., Fleig, C., & Maedche, A. (2018, June). Development of a data-driven
business model transformation tool. In International Conference on Design Science
Research in Information Systems and Technology (pp. 205-217). Springer, Cham.
Cantamessa, M., & Montagna, F. (2016). Business model innovation. In Management of
Innovation and Product Development (pp. 115-135). Springer, London.
Cosenz, F., & Noto, G. (2018). A dynamic business modelling approach to design and
experiment new business venture strategies. Long Range Planning, 51(1), 127-140.
Ebel, P. A., Bretschneider, U., & Leimeister, J. M. (2016). Can the crowd do the job?
Exploring the effects of integrating customers into a company’s business model
innovation. International Journal of Innovation Management, 20(07), 1650071.
Güemes-Castorena, D., & Toro, M. A. (2015, August). Methodology for the integration of
Business Model Canvas and technological road map. In 2015 Portland International
Conference on Management of Engineering and Technology (PICMET) (pp. 41-52).
IEEE.
Heyes, G., Sharmina, M., Mendoza, J. M. F., Gallego-Schmid, A., & Azapagic, A. (2018).
Developing and implementing circular economy business models in service-oriented
technology companies. Journal of cleaner production, 177, 621-632.
Hoveskog, M., Halila, F., Mattsson, M., Upward, A., & Karlsson, N. (2018). Education for
Sustainable Development: Business modelling for flourishing. Journal of Cleaner
Production, 172, 4383-4396.

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BUSINESS MODEL CANVAS ANALYSIS OF LITTLEPAY
Li, X., Qiao, H., & Wang, S. (2017). Exploring evolution and emerging trends in business
model study: a co-citation analysis. Scientometrics, 111(2), 869-887.
Littlepay.com. (2019). Company. Retrieved from https://littlepay.com/company/
Manninen, K., Koskela, S., Antikainen, R., Bocken, N., Dahlbo, H., & Aminoff, A. (2018).
Do circular economy business models capture intended environmental value
propositions?. Journal of Cleaner Production, 171, 413-422.
Philipson, S. (2016). Radical innovation of a business model: is business modelling a key to
understand the essence of doing business?. Competitiveness Review, 26(2), 132-146.
Tweedie, D., Nielsen, C., & Martinov‐Bennie, N. (2018). The business model in integrated
reporting: Evaluating concept and application. Australian Accounting Review, 28(3),
405-420.
1.

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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)
Appendix 3 – Table 3 – Solutions provided by Littlepay
Source - (Littlepay.com., 2019)

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BUSINESS MODEL CANVAS ANALYSIS OF LITTLEPAY