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Euronet Worldwide's (EEFT) epay, Revolut Form Partnership

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Euronet Worldwide, Inc.’s (EEFT - Free Report) unit epay is now the global partner for value-added digital gift cards and prepaid products of the UK’s leading fintech application, Revolut.

This new collaboration will spread across 36 countries through an API integration into Revolut’s three applications, namely Consumer, Junior and Business. epay is consistently providing access to a wide array of digital content at global and local levels to Revolut customers.

epay has been providing these services since its launch in April this year.
Revolut customers can gain traction from this offer with the right to buy, gift and be rewarded with gift cards across health and wellness, lifestyle, game, entertainment, food, etc. They can even enjoy digital content in a seamless manner.

After its April-launch in countries like the UK and many other parts of Europe, the offer will further be rolled out in other countries and core markets, such as the United States and Australia, which will follow in the upcoming months.

There is a visible absence of a fintech app with a cross-category marketplace and this exclusivity makes Revolut the first fintech provider across the globe to render these value-added services.

Notably, Revolut will be able to take advantage of epay’s flexible API integration. This tie-up is definitely a path-breaking move for epay. Its value-added services will be included in the standard Revolut plan for every other universal unveiling of Revolut in the future. This is in addition to the 36 countries already under consideration.

Being an infrastructure partner for a global roll-out bodes well for this Euronet segment.

The epay segment has also been performing well for the last many quarters. In 2020, the segment contributed 33.7% to the company’s total revenues on higher transactions, expansion of digital media products and SaaS solutions. The epay segment’s total revenues of $242.3 million surged 40% year over year in the first quarter.

In epay, some of the most significant product distribution expansions were enabled by mobile wallets. The segment benefited from this strategy of boosting digital channel distribution in certain markets during 2020. We expect the momentum to continue on the back of robust online and in-app sales of digital media products as well as the surging retail sales of the same product category.

The segment has a pipeline of new distribution agreements in 2021. All these initiatives strengthen its prospects.

Zacks Rank & Price Performance of Peers

Shares of Euronet, which currently carries a Zacks Rank #5 (Strong Sell), have gained 60.2% in a year’s time compared with the  industry’s rise of 19.1%.


You can see  the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other stocks in the same space including  Virtu Financial, Inc. (VIRT - Free Report) , Jefferies Financial Group Inc. (JEF - Free Report) and Synchrony Financial  (SYF - Free Report) have also rallied 31.4%, 146.8% and 166.1%, respectively, in the same time frame.

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