University Fintech Analysis: Littlepay Business Model Canvas Report

This report provides a detailed analysis of Littlepay, a fintech startup, using the Business Model Canvas framework. The report deconstructs Littlepay's business model into nine building blocks, including customer segments, key partners, value propositions, key activities, channels, revenue streams, cost structure, key resources, and customer relationships. It explores the interrelationships between these blocks and identifies critical success factors and potential downside risks. The analysis highlights Littlepay's customer-centric approach, secure platform, and multi-currency transaction capabilities. The report also offers recommendations for Littlepay, such as becoming more customer-centric and localizing its services to enhance competitiveness and future growth. The report concludes that while Littlepay has been successful, it should increase security and improve communication channels to maintain its brand image.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author note

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:
 The respective organization needs to be more customer-centric in approach which will be
beneficial for them in gaining competitiveness
 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

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 platform to 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
supplier relationships through strategic alliances and it will be helpful for the business
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
qualitative as they want to provide an overall positive experience to the different customers.
4. Key activities
The primary critical activities of the company are inclusive of the research and
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

7
MANAGEMENT
company has been able to bypass the level of the regulations along with acts as the barrier to
entry for the other competitors which are looking to imitate them (Forés & Camisón, 2016).
9. Customer relationships
Littlepay does not have any customer relations with different users. It has no such
telephone or publicly chat or email functioning in the organization (Pedersen & Netter, 2015). It
is described as one of the most common ecommerce websites which help in focusing on driving
down the cost base appropriately (Prajogo, 2016).
B. Interrelationships
The Littlepay is one such software which helps them in building proper relationships with
the different customers appropriately. The value proposition is one of the significant aspects of
Littlepay which should be managed by the company to provide them with safe transactions and
security options that can gain competitive advantage (Bouwman et al., 2018).
Moreover, there are no such customer relationships maintained by the customers through
the chat or email as it is one of the platforms such as ecommerce payment aspect that can be
appropriately managed by the different customers (Parrilli & Fitjar, 2016). The principal
activities of the company are inclusive of the compliance as well as security that will be
beneficial in making the usability of the platform more comfortable and it will help gain
competitiveness.
The channels such as the website of the company are required to be handled efficiently
by Littlepay along with offline marketing are the major aspects which should be controlled by
the company which will be helpful for them in managing the different demands of the customers
with a single click (Hacklin, Björkdahl & Wallin, 2018).

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
different commissions and the infrastructure is cost driven which will be beneficial in
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:
The feet on the street approach is 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).
The security and compliance are the other critical success factors which 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, it can be concluded that Littlepay has been successful in successfully
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.

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:
 Littlepay needs to become more customer-centric through the inclusion of the security
approaches (Mian, Lamine & Fayolle, 2016)
 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)

11
MANAGEMENT
References
Bleicher, J. and Stanley, H, 2016. Digitization as a catalyst for business model innovation a
three-step approach to facilitating economic success. Journal of business management,
(12).
Bouwman, H., Heikkilä, J., Heikkilä, M., Leopold, C., & Haaker, T. (2018). Achieving agility
using business model stress testing. Electronic Markets, 28(2), 149-162.
Dijkman, R. M., Sprenkels, B., Peeters, T., & Janssen, A. (2015). Business models for the
Internet of Things. International Journal of Information Management, 35(6), 672-678.
Forés, B., & Camisón, C. (2016). Does incremental and radical innovation performance depend
on different types of knowledge accumulation capabilities and organizational
size?. Journal of Business Research, 69(2), 831-848.
Hacklin, F., Björkdahl, J., & Wallin, M. W. (2018). Strategies for business model innovation:
How firms reel in migrating value. Long range planning, 51(1), 82-110.
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.
Kasemsap, K. (2016). Creating product innovation strategies through knowledge management in
global business. In Civil and Environmental Engineering: Concepts, Methodologies,
Tools, and Applications (pp. 1-26). IGI Global.
Littlepay.com (2019) The express route to contactless payments (online) Retrieved from
https://littlepay.com/ [Accessed on 6th April 2019]