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Euronet's (EEFT) Unit to Spread Digital Services Across Europe
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Euronet Worldwide, Inc.’s (EEFT - Free Report) subsidiary Ria Money Transfer recently got a Payment Institution license in Lithuania by virtue of which it can continue to foray into Europe through its digital operations.
Notably Ria, which is an established leader in the global remittance market, unveiled Ria Money Transfer App for the European market in May this year.
Moreover, Ria will be working closely with the Bank of Lithuania, which will empower the former to spread its digital operations for serving other European countries across the European Union (EU) along with Lithuania. Also, the unit has plans to set up an office in Vilnius, the capital city of Lithuania.
The plan seems a strategic fit as Ria can avail of local support for rolling out enhanced digital solutions linked to funding methods, mobile wallets and personalization. This, in turn, is likely to not only provide an impetus to the company’s digital business but also help Ria in fulfilling its digital expansion endeavor across the EU.
We note that Lithuania seems to provide the perfect fintech ecosystem for adding scale to Ria’s diverse range of capabilities and complementing its digital expansion efforts across Europe. The country’s diversified talent pool and cutting-edge infrastructure helped Lithuania emerge as not only one of the most powerful fintech hubs across the globe but also the second most important in Europe. These notable features have fascinated numerous renowned finance companies and thriving start-ups to choose Lithuania as the digital hub for strengthening their businesses across the EU.
With Ria being its partners’ preferred choice for faster, convenient and secured global money transfers, the entity continues to undertake a host of initiatives to fortify its global digital footprint. To name a few, Ria joined forces with America’s leading grocery market retailer Kroger in October, which enabled customers to make money transfers across America and the rest of the world. This Euronet arm also collaborated with Texas-based Fiesta Mart in the same month by dint of which its money transfer service could be availed of in the state. Earlier in July, the subsidiary partnered with OXXO, in line with its commitment to bolster its presence in Mexico.
Riding on the above-mentioned initiatives to boost its global presence, Ria boasts a strong worldwide network of enhanced financial services. Notably, the unit is empowered with the world’s second largest network of global money transfers that covers more than 447,000 locations across 165 countries. It also flaunts a strong bank account deposit network, which is growing every year at 23% rate, on average. In fact, Ria’s digital payout capabilities are constantly fetching a growing number of mobile wallet holders.
Moreover, Ria’s latest move bodes well amid the frequent usage of digital transactions, which have been gaining momentum for quite some time. In fact, the COVID-19 outbreak further fueled this digital trend that is likely to sustain even beyond the pandemic.
Also, the global remittance market is well-poised for growth and coupled with higher adoption of digital transactions, it is likely to position Euronet well for long-term growth. Per a Research and Markets report, the global remittance market is anticipated to witness a CAGR of 3.9% over the 2019-2026 period.
Other stocks in the same space including Synchrony Financial (SYF - Free Report) and Globe Life Inc. (GL - Free Report) have also lost 13.8% and 7%, respectively, in the same time period. However, American Express Company (AXP - Free Report) has gained 4%. All three stocks carry the same Zacks Rank as Euronet at present.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Euronet's (EEFT) Unit to Spread Digital Services Across Europe
Euronet Worldwide, Inc.’s (EEFT - Free Report) subsidiary Ria Money Transfer recently got a Payment Institution license in Lithuania by virtue of which it can continue to foray into Europe through its digital operations.
Notably Ria, which is an established leader in the global remittance market, unveiled Ria Money Transfer App for the European market in May this year.
Moreover, Ria will be working closely with the Bank of Lithuania, which will empower the former to spread its digital operations for serving other European countries across the European Union (EU) along with Lithuania. Also, the unit has plans to set up an office in Vilnius, the capital city of Lithuania.
The plan seems a strategic fit as Ria can avail of local support for rolling out enhanced digital solutions linked to funding methods, mobile wallets and personalization. This, in turn, is likely to not only provide an impetus to the company’s digital business but also help Ria in fulfilling its digital expansion endeavor across the EU.
We note that Lithuania seems to provide the perfect fintech ecosystem for adding scale to Ria’s diverse range of capabilities and complementing its digital expansion efforts across Europe. The country’s diversified talent pool and cutting-edge infrastructure helped Lithuania emerge as not only one of the most powerful fintech hubs across the globe but also the second most important in Europe. These notable features have fascinated numerous renowned finance companies and thriving start-ups to choose Lithuania as the digital hub for strengthening their businesses across the EU.
With Ria being its partners’ preferred choice for faster, convenient and secured global money transfers, the entity continues to undertake a host of initiatives to fortify its global digital footprint. To name a few, Ria joined forces with America’s leading grocery market retailer Kroger in October, which enabled customers to make money transfers across America and the rest of the world. This Euronet arm also collaborated with Texas-based Fiesta Mart in the same month by dint of which its money transfer service could be availed of in the state. Earlier in July, the subsidiary partnered with OXXO, in line with its commitment to bolster its presence in Mexico.
Riding on the above-mentioned initiatives to boost its global presence, Ria boasts a strong worldwide network of enhanced financial services. Notably, the unit is empowered with the world’s second largest network of global money transfers that covers more than 447,000 locations across 165 countries. It also flaunts a strong bank account deposit network, which is growing every year at 23% rate, on average. In fact, Ria’s digital payout capabilities are constantly fetching a growing number of mobile wallet holders.
Moreover, Ria’s latest move bodes well amid the frequent usage of digital transactions, which have been gaining momentum for quite some time. In fact, the COVID-19 outbreak further fueled this digital trend that is likely to sustain even beyond the pandemic.
Also, the global remittance market is well-poised for growth and coupled with higher adoption of digital transactions, it is likely to position Euronet well for long-term growth. Per a Research and Markets report, the global remittance market is anticipated to witness a CAGR of 3.9% over the 2019-2026 period.
Zacks Rank & Price Performance of Peers
Shares of Euronet, which currently carries a Zacks Rank #3 (Hold), have lost 14.5% in a year compared with the industry’s decline of 20.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other stocks in the same space including Synchrony Financial (SYF - Free Report) and Globe Life Inc. (GL - Free Report) have also lost 13.8% and 7%, respectively, in the same time period. However, American Express Company (AXP - Free Report) has gained 4%. All three stocks carry the same Zacks Rank as Euronet at present.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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