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Euronet's Unit Signs Agreement for Better Money Transfer

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Euronet Worldwide, Inc.’s (EEFT - Free Report) subsidiary, Ria Money Transfer, recently announced its agreement with Boost Mobile, a unit of Sprint Corporation. Notably, the deal will enable Dealers of the Boost Mobile to provide domestic as well as international money transfer services. The agreement would further allow the customers to avail bill payment services at more than 6,000 locations globally.

Ria Money is a global leader in money remittances and is known for providing secure, quick and affordable money transfers through a solid network of agents across 150 countries.

Following the deal, customers of Ria Money will get better options to send and receive money in the United States. Meanwhile, the similar customer base of both the companies will enable Boost Mobile to drive more store traffic, consequently leading to a rise in revenues. It would also help the Boost Mobile cater to its customers with a wide range of products and services.

Ria Money, which belongs to the money transfer segment of Euronet, is consistently delivering robust growth over the past few years. This segment has always been active about expansion through buyouts and collaborations. For instance, the agreement extension with Walmart has contributed significantly to the company’s revenue. The buyouts of HiFX, IME and XE should also lead to long-term growth of this segment. In the first half of 2018, revenues from this segment represented around 43% of the total consolidated revenues of the parent company.

To ramp up its growth profile, the company has been putting in efforts in its other segments as well. It has strengthened customer base in India and several European countries a few months back. Its launch of Amazon Cash in the United States also deserves special mention. Continuing the momentum, it purchased new ATM assets and ATM outsourcing agreements with APLITT SPOLKA AKCYJNA last month, which has bolstered its portfolio further. These deals poise the company for growth.

Shares of this Zacks Rank #2 (Buy) company have rallied nearly 2% in a year's time, against its industry’s decline of 4%.

Other Key Picks

Investors looking for other impressive stocks in the same sector might also get interested in On Deck Capital, Inc. (ONDK - Free Report) , Aflac Incorporated (AFL - Free Report) and ProAssurance Corporation (PRA - Free Report) .

On Deck Capital operates an online platform for small business lending in the United States, Canada, and Australia. It carries a Zacks Rank #1 (Strong Buy). The company managed to deliver positive results in three of the four trailing quarters, with an average positive surprise of 58.34%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Aflac provides voluntary supplemental health and life insurance products. With a Zacks Rank of 2, it recorded a trailing four quarter surprise of 6.40%.

ProAssurance provides property and casualty insurance, and reinsurance products in the United States. It has a Zacks Rank of 2 and delivered an average positive surprise of 8.26% in two of the trailing four quarters.

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