Our Issuer Solutions segment generally focuses on small to
mid-sized financial institutions with less than $15 billion in assets. Smaller financial institutions generally do not have the scale or infrastructure typical of large institutions and are more likely to
outsource their payment processing needs. Our Issuer Solutions segment utilizes broad and varied distributions channels, including direct sales forces and multiple referral partners.
Sales and Marketing
We distribute our
services through multiple sales channels that enable us to efficiently and effectively target a growing and diverse client base of merchants and financial institutions. All three segments sales channels include direct sales forces and referral
partners that sell our solutions. In addition, all three segments offer certain services on a white-label basis which enables them to be marketed under our partners brands. We select referral partners that enhance our distribution and augment
our services with complementary offerings. We believe our sales structure provides us with broad geographic coverage and access to various industries and verticals.
Our sales teams in all three segments are paid a combination of base salary and commission. As of December 31, 2018, we had approximately
1,900 full-time employees participating in sales and marketing, including sales support personnel. Commissions paid to our sales force are based upon a portion of revenue from new business and cross-selling to existing clients. Residual payments to
our referral partners are based upon a portion of revenues earned from referred business. For the year ended December 31, 2018, combined sales force commissions and residual payments represent approximately 63% of total sales and marketing
expenses, or $715.7 million.
Worldpay, Inc. was formed on January 16, 2018 through Vantiv, Inc.s acquisition of Worldpay Group plc. The strategic rationale for
the acquisition included creating a leader in global eCommerce as well as to leverage the predecessor companies core strengths to continue to expand across high-growth segments of the payments market. The heritage companies technology
assets provide a strong, integrated foundation for innovation and growth, enabled by an agile and scalable U.S. platform as well as a flexible, highly advanced global platform. The companies leading international eCommerce and U.S. eCommerce
capabilities combined to establish a leading global eCommerce player. At the same time, the companies Integrated Payments technological know-how and capabilities in the U.S. combined with Legacy
Worldpays global merchant base enabled the combined company to expand its capabilities into new and high-growth emerging markets.
As a result of the combination, Worldpay is a leader in global eCommerce and serves a diverse set of merchants across a variety of end-markets, sizes and geographies. It has become the leading global payment solutions provider, powering integrated omni-commerce in the U.S. and Europe, the two largest cross-border payments markets. We are one of
the few global businesses able to address merchants global complexities, providing payments capabilities in-store, online or on a mobile device, and granting merchants access to a global payments network
through an agile, integrated, secure, reliable and highly scalable proprietary global payments platform.
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