PayPal and epay, a unit of Euronet Worldwide Inc. (EEFT - Free Report) entered into an agreement whereby the latter will provide digital gift card content through the PayPal Digital Gift Store.
Euronet’s epay maximizes its revenues by providing global prepaid products with their distribution through network-enabling services. It delivers innovative solutions such as tailored electronic payment, for cash collection, a full reporting and settlement service and also full support to the marketing and distribution service.
PayPal has a large customer base across U.K., U.S. and Germany. This will help Euronet’s epay to expand its reach to millions of users in these regions through the proposed partnership. Also, the company is prudently capitalizing on the digital globally emerging market of digital gift cards.
The access to Euronet epay’s digital gift card content is kept very simple and user friendly through consumer PayPal accounts to maximize the sale of the products.
Euronet’s epay is linked with several global brands. The global presence combined with recent launches of several solution services have helped the company to be recognized as a leader in the digital gift card technology space.
epay is an important top line growth driver for Euronet. During the third quarter of 2013, the epay segment reported total revenues of $182.6 million, which increased 6% year over year. This announced partnership with PayPal is expected to enhance it further.
Among other financial service providers, Moody’s Corporation (MCO - Free Report) entered into a partnership agreement with Isenberg School of Management’s finance department to provide the faculty and students of the school with strategic resources.
Euronet presently carries a Zacks Rank #1 (Strong Buy). Other better ranked stocks that are worth considering include FleetCor Technologies Inc. (FLT - Free Report) and American Express Company (AXP - Free Report) . While FleetCor carries the same Zacks Rank as Euronet, American Express sports a Zacks Rank #2 (Buy).