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Euronet's (EEFT) Unit Introduces Recurring Billing Solution

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Euronet Worldwide, Inc.’s (EEFT - Free Report) digital payments business segment epay launched a recurring billing solution, mainly aimed at the subscription products for Microsoft 365, Xbox Game Pass Ultimate and Xbox All Access in North and South America, Europe, Asia and Australia.

People will now be able to opt for subscription-based and buy-now-pay-later payments options and use the digital products on their laptops, phones, etc. Companies and brand partners across the globe will now be able to offer this option to their customers.

The new solution helps retailers, telcos and companies witness recurring revenues that were previously provided in a single transaction. Channel partners now can enrich their product portfolio by leveraging epay’s connectivity to its providers and strategic partners.

This unit of EEFT processes digital payments and works with value-added services with the help of technologies and APIs of the REN payments platform. This subscription-based business model holds tremendous prospects as the same supports growth and digital transformation.

The epay segment performed well for the last many quarters. epay has been taking several initiatives to bolster its presence and enhance its digital portfolio for a while.

In September, epay announced the integration of PayPal QR Code in their point-of-sale solution. In 2020, the same contributed 33.7% to EEFT’s total revenues on higher transactions, expansion of digital media products and SaaS solutions. epay gained traction from this strategy of boosting digital channel distribution in certain markets during 2020.

Some of the most significant product distribution expansions in the unit were enabled by mobile wallets. The segment launched the Microsoft XBOX Subscriptions service with Telefonica Spain and Microsoft Office 365 distribution through fnac.com France, apart from enhancing other digital channel distributions. We expect this segment to continue performing well 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.

Zacks Rank & Price Performance of Peers

Shares of Euronet, which currently carries a Zacks Rank #3 (Hold), have lost 2.1% in a year’s time against the industry’s rise of 28.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Investment ResearchImage Source: Zacks Investment Research

Some better-ranked stocks in the same sector are Houlihan Lokey, Inc. (HLI - Free Report) , Virtu Financial, Inc. (VIRT - Free Report) and Jefferies Financial Group Inc. (JEF - Free Report) .

Houlihan Lokey is an investment bank, which focuses on mergers and acquisitions, financings, financial restructurings and financial advisory services. With a Zacks Rank #1 currently, the stock has gained 82.9% in a year’s time. HLI managed to deliver a trailing four-quarter earnings surprise of 39.5%, on average.

Headquartered in New York, NY, Virtu Financial is a market-leading financial services firm that leverages cutting-edge technology to provide execution services and data, analytics and connectivity products to its clients and deliver liquidity to the global markets. With a Zacks Rank #2 (Buy) at present, VIRT’s shares have gained 18.6% in a year’s time. VIRT’s earnings managed to surpass estimates in three of the trailing four quarters (while missing in one), the average beat being 25.3%.

Jefferies Financial is a diversified financial services company. This currently Zacks #1 Ranked financial service provider has gained 85.3% in a year. JEF managed to deliver a trailing four-quarter surprise of 222.9%, on average.