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Euronet's (EEFT) Unit, Banco Rendimento Form Partnership

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Euronet Worldwide, Inc.’s (EEFT - Free Report) unit Ria Money Transfer recently launched instant payments in Brazil. This was done through the nation’s new PIX real time payments network. Ria Money will take part in the PIX network via its alliance with Banco Rendimento to enable local BRL transfers and payment transactions 24*7 including holidays and weekends.

Customers can now gain traction from the feasibility of the new digital infrastructure for receiving funds within a few seconds at reasonable rates.
PIX is the single brand for the instant payment chain, which was launched by the Central Bank of Brazil last November. This unique solution allows transfer and receipt of cash solely through the PIX key related to the account. Notably, it enriches customer experience by eradicating the manual inputs of bank account details, which may induce mistakes. People who were hitherto excluded from electronic payments can now enjoy seamless money transfers.

This is not the first time that Ria Money enabled fintech for all customers to experience a better and more competitively-priced payment process. This new deal complements the segment’s leading range of bank deposit abilities. Ria Money is well-poised for growth on the back of alliances.

Last month, Ria Money extended its distribution network with the help of an alliance with Mooney to further establish its dominance by providing services to the latter’s 45,000 points of sale and 20 million customers in the European country.

Kroger selected Ria Money as its second money transfer service provider in the United States at all its approximately 2,000 locations. The company also expanded its footprint in Israel by launching Ria Money service at WIC WorldCom.

Ria Money is massively contributing to strengthen the company’s Money Transfer segment. Its international fund transfer grew 16% year over year in 2020, which is pretty impressive. In the first quarter, Euronet saw international outbound transaction growth of 27% against the World Bank’s projection of a 7% downfall. The segment also witnessed a whopping 125% rise in its digital transactions. Notably, Ria Money has the most advanced bank deposit network in the world.

Also, the global remittance market is well-placed for growth and further coupled with higher adoption of digital transactions, it bodes well for Euronet in the long haul.

Zacks Rank & Price Performance of Peers

Shares of Euronet have gained 15.9% in six months’ time compared with the industry’s growth of 18.8%. The stock should continue its rally owing to its solid EFT, epay and Money Transfer segments along with increased digital transactions.

Zacks Investment ResearchImage Source: Zacks Investment Research

Other stocks in the same space including XP Inc. (XP - Free Report) , Moodys Corporation (MCO - Free Report) and Virtu Financial, Inc. (VIRT - Free Report) have also rallied 18.6%, 23.8% and 25%, respectively, in the same time frame.

Euronet, currently carries a Zacks Rank #5 (Sell).

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

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