Rappi turns to Worldpay for rapid international expansion
Unicorn delivery service improves payment acceptance as it takes on the Latin American market
São Paulo, January 7, 2019 – Rappi, a Colombian start-up delivery service, has selected Worldpay Inc. (NYSE:WP; LSE: WPY) as its primary payments provider, to ensure the success of its international expansion. Growing at a rate of 30 percent every month, Rappi is one of the fastest growing start-ups in Latin America and its ambition is to become the "everything store" of the region.
Since its foundation in 2015, Rappi has become Colombia's first 'unicorn' start-up, with thousands of the iconic orange-clad bicycle and motorbike drivers delivering food, apparel and electronics to consumers across seven Latin American countries. Rappi selected Worldpay as it was best positioned to deliver the international coverage it needed to help it rapidly expand into new markets, while allowing the brand to deliver a consistently excellent customer experience.
Since partnering with Worldpay in July of 2018, Rappi has increased payment approval rates by 10 percentage points , and reduced payment processing costs by as much as half. Streamlining operations under a single payments provider also means Rappi is able to expand at a much faster pace, avoiding the complications of dealing with multiple payment processors in multiple markets.
Worldpay's insight into customer data and local spending habits is helping to inform Rappi's growth strategy, enabling the company to tailor its services to the preferences of shoppers in each country. Worldpay has already helped Rappi expand into Brazil, Chile and Mexico, in addition to enhancing payments capabilities in its native Colombia.
Juan Pablo Ortega, co-founder of Rappi said, "The app market is extremely competitive – if you turn a customer away over a poor experience, including a declined payment, it’s unlikely they will shop with you again. Our mission is to make life easier for consumers, and that ethos applies to our customer experience too. Worldpay has helped us to deliver the best online shopping experience for our customers across Latin America. With a more complete view of our payment data and the ability to quickly act on this information, we’ll be in the best position to continue our growth in new markets."
According to Juan D'Antiochia, general manager for Latin America, Global Enterprise eCommerce at Worldpay, Rappi is a great example for all companies seeking to grow abroad. "Expanding into new markets may seem daunting for start-ups, but with the help of partners who provide not only the technology, but also the market knowledge and insight to succeed, the rewards can be huge. Rappi has had an exceptional year and with our guidance and services they will be ready to meet their ambitious growth targets in Latin America and around the world," concluded D'Antiochia.
Worldpay, Inc. (NYSE: WP; LSE: WPY) is a leading payments technology company with unique capability to power global omni-commerce. With an integrated technology platform, Worldpay offers a comprehensive suite of products and services, delivered globally through a single provider. Worldpay processes over 40 billion transactions annually, supporting more than 300 payment types across 146 countries and 126 currencies. The company is focused on expanding into high-growth markets and customer segments, including global eCommerce, integrated payments and B2B.
Rappi is an all-purpose delivery application that aims to be the personal assistant for its users. The Colombian startup is present in Brazil, Colombia, Mexico, Argentina, Chile, Uruguay and Peru. Through the platform, it is possible to buy products of different categories, from Restaurants, Supermarkets and Beverages to literally anything. In addition, the application has a virtual wallet, RappiPay, where it is possible to make transfers and even payments in partner establishments. In 2016, the company was accelerated by Y Combinator, the most important incubator of startups in the world. At the beginning of 2018, it received a contribution of US $ 185 million, which allowed its expansion in Brazil and Latin America; in September of 2018 received a new contribution, this time $ 220 million, becoming the new Latin American unicorn.
 An intelligent payment process is crucial for merchants, since the data generated in the transactions provides insight on consumer behaviors, helping to correct inefficiencies and improve fraud management. Ecommerce payment approval rates are on average, often below 90 per cent, which can represent millions of dollars in lost income, depending on total sales.
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