Euronet Worldwide, Inc. ( EEFT Quick Quote EEFT - Free Report) recently unveiled an innovative business to business (B2B) cross-border payments platform named Dandelion. The real-time solution can aid several financial players such as fintechs, banks, ERPs and tech platforms to seamlessly process cross-border payments into business or consumer accounts.
Shares of Euronet lost 4.3% on Nov 10, replicating declines in broader markets.
Dandelion is a first-of-a-kind product launched by Euronet as it does not merely focus on enhancing the payments interface but also tends to effectively communicate both sides of a cross-border transaction. The product addresses the dire need for end-to-end solutions for upgrading outcomes in the cross-border payments space, which otherwise is weighed down by a string of complicated and time-consuming processes.
Other notable features of Dandelion include its expansive global reach, strong real-time bank network, ability to integrate into wallets and alternative payment platforms, and enhanced compliance capabilities utilizing Euronet’s leading compliance know-how. Backed by its capabilities, the product is expected to provide real-time payments to those countries, which account for over 80% of the global GDP, by the first quarter of 2022.
The recent move reinforces Euronet’s sincere efforts to bolster its product portfolio and alternative global payout capabilities. With the help of the new platform, EEFT intends to strengthen the global payments footprint of a diversified range of businesses. The platform also eliminates the need to invest substantial resources on the part of businesses for effectively processing international payments and better serving customers.
The latest move comes at an opportune time as well, considering the substantial uptick in the number of cross-border payments over a substantial time period. Per management of the global strategy consulting arm of Ernst & Young, the worldwide cross-border payment flow is witnessing a CAGR of 5% each year and is projected to reach $156 trillion within 2022. The space is continuously evolving with changes ranging from inclination toward digital payments, entrance of temporary and gig workers amid the global labor market, and accelerated expansion into emerging markets. These transformations are making it difficult for consumers and small businesses to keep pace. This is where Dandelion seems to come in handy as it aims to address these issues by delving into the most inaccessible regions as well.
Given the robust demand for real-time payments, Euronet is poised to capitalize on the prevailing scenario. This Zacks Rank #3 (Hold) provider of global financial technology solutions and payments has been committed to bolstering its digital suite and promoting digitization of the money movement process. The pandemic induced uncertainty made digital money transfers the need of the hour for addressing emergency needs. EEFT’s Money Transfer and epay segments have contributed significantly to Euronet’s efforts as well.
Similar to Euronet’s recent move, other companies such as
The Western Union Company ( WU Quick Quote WU - Free Report) , Mastercard Incorporated ( MA Quick Quote MA - Free Report) and American Express Company ( AXP Quick Quote AXP - Free Report) have also resorted to either launch B2B platforms or collaborated with renowned financial service providers for easing payments.
Western Union boasts of a robust B2B payments platform. WU keeps on pursuing collaborations with several global financial service providers with an aim to boost its platform and offer enhanced management of international payments on the back of its expansive worldwide network spanning across 200 countries and territories. In September 2021, Western Union collaborated with Japan’s KYODAI Remittance in a bid to offer enhanced B2B cross-border payments for corporate clients.
Mastercard launched Mastercard Track Business Payment Service in 2020 with an aim to upgrade B2B payments. MA partners with several organizations and rolls out cost-effective solutions for tapping the current prospects across the B2B payments space globally. Mastercard has been undertaking significant investments aimed at modernizing the B2B payments space and enhancing real-time payments functionality.
American Express joined forces with Goldman Sachs in October 2021 for offering a cloud-based payments solution to large corporate clients, who will be empowered to manage multiple payment platforms and consequently, result in seamless B2B payments. AXP continues to pursue a host of measures focused on technology upgradations, introduction of secured digital solutions and assisting businesses in regulating payments.
Shares of Euronet have lost 14.2% over a year compared against the
industry’s rally of 31.2%. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Image Source: Zacks Investment Research
While shares of Mastercard and American Express have gained 7.8% and 56.5%, respectively, in a year, Western Union's stock has lost 19.4% in the same time frame.