Profile: WEX Inc (WEX)
20 May 2013
WEX Inc., formerly Wright Express Corporation, incorporated in 2005, is a provider of value-based, business payment processing and information management solutions. The Company operates in two segments: Fleet Payment Solutions and Other Payment Solutions. The Fleet Payment Solutions segment provides customers with fleet vehicle payment processing services specifically designed for the needs of commercial and government fleets. The Other Payment Solutions segment provides customers with payment processing solutions for their corporate purchasing and transaction monitoring needs through its corporate purchase card, its prepaid and gift card products and services in Australia and through its payroll prepaid card product and services in the United States. The Company’s Fleet Payment Solutions and Other Payment Solutions segments provide its more than 350,000 customers with security and control for complex payments across a spectrum of business sectors. Together with its affiliates, it markets its products and services directly, as well as through more than 150 strategic relationships which include oil companies, fuel retailers and vehicle maintenance providers. On March 31, 2011, the Company acquired certain assets of rapid! Financial Services LLC (rapid! PayCard). In August 2012, the Company acquired a 51% interest in UNIK S.A. In October 2012, it acquired Fleet One.
Fleet Payment Solutions segment
The Company has created fuel payment processing networks in the United States. The Company collects an array of information at the point of sale, including the amount of the expenditure, the identity of the driver and vehicle, the odometer reading, the identity of the fuel or vehicle maintenance provider and the items purchased. Its payment processing network, which is deployed at fuel and maintenance locations that use its software, is referred to as a closed-loop network. In a payment processing transaction, it pays the purchase price for the fleet customer's transaction, less the payment processing fees it retains, to the fuel or vehicle maintenance provider, and it collects the total purchase price from the fleet customer, normally within one month from the billing date. During the year ended December 31, 2011, it had approximately 233 million domestic payment processing transactions and approximately 15 million Australian payment processing transactions. In a transaction processing transaction it earn a fixed fee per transaction. The Company processed approximately 52 million domestic transaction processing transactions and approximately 19 million international transaction processing transactions in 2011.
The Company provides account management services, which include Customer service, account activation and account retention, Authorization and billing inquiries and account maintenance, Premium fleet services, Credit and collections services and Merchant services. The Company offers customer service, account activation and account retention services to fleets and fleet management companies and the fuel and vehicle maintenance providers on its network. Its services include promoting the adoption and use of its products and programs and account retention programs on behalf of its customers. The Company handles authorization and billing questions, account changes and other issues for fleets through its customer contact centers, which are available round the clock. Fleet customers also have self service options available to them through its WEXOnline, MotorPass and Motorcharge Websites. The Company has developed account approval, credit management and fraud detection programs. Its representatives work with fuel and vehicle maintenance providers to enroll them in its network, test all network and terminal software and hardware, and train them on its sale, transaction authorization and settlement processes.
The Company provides standard and customized information to customers through monthly vehicle analysis reports, custom reports and its Websites, WEXOnline, MotorPass and Motorcharge. The Company also alerts the customer to unusual transactions or transactions that fall outside of pre-established parameters. Customers can access their account information, including account history and recent transactions, and download the details. In addition, through its Websites, fleet managers can elect to be notified by email when limits are exceeded in specified purchase categories, including limits on transactions within a time range and gallons per day.
The Company markets its payment processing and information management products and services to fleets directly and indirectly. It markets its products and services using the Wright Express brand name in North America and the MotorPass and Motorcharge brand names in Australia directly to its commercial and government vehicle fleet customers. These direct customers include fleets of all sizes and vehicle categories. The Company markets its products and services indirectly through co-branded, affinity, distributor and private label relationships.
Other Payment Solutions Segment
The Company issues corporate purchase card, prepaid card and payroll card products as described below. Its corporate purchase card products provide commercial travel and entertainment and purchase capabilities to businesses in industries that can utilize its information management functionality. The corporate purchase card products can be sold jointly with the fleet card product to offer a total payment solution to companies. Its prepaid card products are primarily offered in Australia through its Wright Express Australia Prepaid subsidiary. Its payroll card products are offered through its rapid! PayCard product.
The Company’s corporate purchase card provides commercial travel and entertainment and purchase capabilities to businesses that benefit from its information management functionality. The product can be sold jointly with the fleet card product to offer a total corporate payment solution to companies. Its single use account product is used for transactions where no card is presented, including, transactions conducted over the telephone, by mail, fax or on the Internet. They also can be used for transactions that require pre-authorization, such as hotel reservations. Under this program, each transaction is assigned a account number and expiration date.
Wright Express Australia Prepaid is a prepaid gift card payment solution provider in Australia, with a service product offering and a patented technology platform. The prepaid cards are restricted to a single merchant or a limited group of retailers. This category includes gift cards, general purpose prepaid cards and travel cards. Through its Website, www.giftvouchers.com, customers are able to purchase third party retailer gift vouchers that can be redeemed in-store or on-line at retailers' Websites. Payroll card products, issued through its rapid! PayCard product and using the VISA network, focus on employer payroll programs, providing payroll prepaid cards, e-paystubs and e-W2s in the United States.
97 Darling Avenue
SOUTH PORTLAND ME 04106