We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Euronet (EEFT) Buys PBMA Business of Piraeus Bank in Greece
Read MoreHide Full Article
Euronet Worldwide, Inc. (EEFT - Free Report) completed the pending acquisition of the Piraeus Bank Merchant Acquiring (PBMA) business of Piraeus Bank (Bank) in Greece. The purchase includes around 205,000 POS terminals at 170,000 merchants in Greece, which will definitely help the financial services provider establish its dominance in the region. This apart, the buyout includes the Bank’s online merchant acquiring business.
For Euronet, Piraeus Bank is the best fit as the latter’s in-store acquiring business represents approximately 20% of the market in Greece while its online merchant acquiring accounts for nearly 40% of online and digital transactions in the country. This vast business opportunity is now readily available for Euronet.
The deal was first announced in March 2021.
Additions to the Deal
There is also another negotiated agreement for a long-term strategic collaboration with the bank for product distribution, customer referrals and more.
Euronet and Piraeus Bank share a long-standing relationship that dates back to the 2000s. EEFT was already the Bank’s card issuing and merchant acquiring services provider prior to the above-mentioned agreement.
In 2005, Euronet's Greek subsidiary Euronet EFT Services Hellas EPE acquired Instreamline S.A., a unit of Piraeus Bank. Instreamline provides credit card and point-of-sale outsourcing services plus debit card and transaction gateway-switching services to the Piraeus Bank Group.
With the completion of the latest buyout, Euronet and Piraeus Bank forge a new 20-year alliance, in which EEFT will boost acquiring capabilities for the bank’s customers using its REN payments platform.
Piraeus Bank has a robust presence with more than 400 branches in Greece. This will enable it to support EEFT regarding operational and commercial services and receive commissions for merchant-acquiring referrals.
Reasons Behind the Move
This deal definitely signifies EEFT’s dominance in the global payments market. Euronet leaves no stone unturned when it comes to expanding its portfolio and penetrating new markets. Its innovative REN platform will also aid its opportunities in Greece.
The move will also help EEFT’s omnichannel payments strategy. The Greek market will leverage a wide suite of cash-based and digital payment solutions, such as QR codes and other tokenized payment methods in digital wallets and payment applications.
EEFT is well-positioned to gain from the region as research shows that the domestic acquiring volume in Greece will increase from €30 billion (US$33 billion) in 2020 to nearly €60 billion (US$66 billion) by 2031.
Demand for contactless payments is here to stay.
Apart from being contactless, digital payments offer other benefits, which can ensure that their demand continues to accelerate even beyond the pandemic. Digital payments provide faster and hassle-free transactions.
The merchant-acquiring business has been a major driver for a fast-growing and very attractive payments market over the past several years, which is riding the wave of digital disruption. The merchant acquirer is the central party in a digital payment transaction. Every time a consumer pays a merchant, it is the acquirer that captures, authorizes, processes and settles that transaction.
Traditionally, acquiring function was generally conducted by a bank, which had relationships with merchants for other banking requirements and therefore also offered merchant-acquiring facilities. Over time, the acquiring industry has evolved with non-banking players entering the fray and providing support directly or indirectly to merchant acquiring.
Some better-ranked stocks in the finance space are Cantaloupe Inc. (CTLP - Free Report) , WEX Inc. (WEX - Free Report) and Virtu Financial, Inc. (VIRT - Free Report) . While VIRT and CTLP sport a Zacks Rank #1 (Strong Buy), WEX carries a Zacks Rank #2 (Buy) at present.
Cantaloupe is a software and payments company, providing end-to-end technology solutions for the unattended retail market. CTLP came up with a trailing four-quarter surprise of 108.3%, on average.
WEX is a leading provider of payment processing and business solutions across a wide spectrum of sectors, including fleet, travel and healthcare. WEX delivered a trailing four-quarter surprise of 9.96%, on average. Over the past 30 days, WEX has witnessed current-year earnings move 0.6% north.
Virtu Financial is a market-leading financial services firm that leverages cutting-edge technology to provide execution services and data plus analytics and connectivity products to its clients as well as deliver liquidity to the global markets. Earnings of VIRT managed to beat estimates in three of its trailing four quarters (missing the mark in one), the average beat being 24.76%. Over the past 60 days, VIRT has witnessed 2022 earnings estimates move 22.4% north.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Euronet (EEFT) Buys PBMA Business of Piraeus Bank in Greece
Euronet Worldwide, Inc. (EEFT - Free Report) completed the pending acquisition of the Piraeus Bank Merchant Acquiring (PBMA) business of Piraeus Bank (Bank) in Greece. The purchase includes around 205,000 POS terminals at 170,000 merchants in Greece, which will definitely help the financial services provider establish its dominance in the region. This apart, the buyout includes the Bank’s online merchant acquiring business.
For Euronet, Piraeus Bank is the best fit as the latter’s in-store acquiring business represents approximately 20% of the market in Greece while its online merchant acquiring accounts for nearly 40% of online and digital transactions in the country. This vast business opportunity is now readily available for Euronet.
The deal was first announced in March 2021.
Additions to the Deal
There is also another negotiated agreement for a long-term strategic collaboration with the bank for product distribution, customer referrals and more.
Euronet and Piraeus Bank share a long-standing relationship that dates back to the 2000s. EEFT was already the Bank’s card issuing and merchant acquiring services provider prior to the above-mentioned agreement.
In 2005, Euronet's Greek subsidiary Euronet EFT Services Hellas EPE acquired Instreamline S.A., a unit of Piraeus Bank. Instreamline provides credit card and point-of-sale outsourcing services plus debit card and transaction gateway-switching services to the Piraeus Bank Group.
With the completion of the latest buyout, Euronet and Piraeus Bank forge a new 20-year alliance, in which EEFT will boost acquiring capabilities for the bank’s customers using its REN payments platform.
Piraeus Bank has a robust presence with more than 400 branches in Greece. This will enable it to support EEFT regarding operational and commercial services and receive commissions for merchant-acquiring referrals.
Reasons Behind the Move
This deal definitely signifies EEFT’s dominance in the global payments market. Euronet leaves no stone unturned when it comes to expanding its portfolio and penetrating new markets. Its innovative REN platform will also aid its opportunities in Greece.
The move will also help EEFT’s omnichannel payments strategy. The Greek market will leverage a wide suite of cash-based and digital payment solutions, such as QR codes and other tokenized payment methods in digital wallets and payment applications.
EEFT is well-positioned to gain from the region as research shows that the domestic acquiring volume in Greece will increase from €30 billion (US$33 billion) in 2020 to nearly €60 billion (US$66 billion) by 2031.
Demand for contactless payments is here to stay.
Apart from being contactless, digital payments offer other benefits, which can ensure that their demand continues to accelerate even beyond the pandemic. Digital payments provide faster and hassle-free transactions.
The merchant-acquiring business has been a major driver for a fast-growing and very attractive payments market over the past several years, which is riding the wave of digital disruption. The merchant acquirer is the central party in a digital payment transaction. Every time a consumer pays a merchant, it is the acquirer that captures, authorizes, processes and settles that transaction.
Traditionally, acquiring function was generally conducted by a bank, which had relationships with merchants for other banking requirements and therefore also offered merchant-acquiring facilities. Over time, the acquiring industry has evolved with non-banking players entering the fray and providing support directly or indirectly to merchant acquiring.
EEFT currently has a Zacks Rank #3 (Hold). Year to date, the stock has gained 7.8% against its industry’s decline of 7.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the finance space are Cantaloupe Inc. (CTLP - Free Report) , WEX Inc. (WEX - Free Report) and Virtu Financial, Inc. (VIRT - Free Report) . While VIRT and CTLP sport a Zacks Rank #1 (Strong Buy), WEX carries a Zacks Rank #2 (Buy) at present.
Cantaloupe is a software and payments company, providing end-to-end technology solutions for the unattended retail market. CTLP came up with a trailing four-quarter surprise of 108.3%, on average.
WEX is a leading provider of payment processing and business solutions across a wide spectrum of sectors, including fleet, travel and healthcare. WEX delivered a trailing four-quarter surprise of 9.96%, on average. Over the past 30 days, WEX has witnessed current-year earnings move 0.6% north.
Virtu Financial is a market-leading financial services firm that leverages cutting-edge technology to provide execution services and data plus analytics and connectivity products to its clients as well as deliver liquidity to the global markets. Earnings of VIRT managed to beat estimates in three of its trailing four quarters (missing the mark in one), the average beat being 24.76%. Over the past 60 days, VIRT has witnessed 2022 earnings estimates move 22.4% north.