Yesterday, Euronet Worldwide Inc. (EEFT - Free Report) announced the expansion of its portfolio of Independent ATM Deployed (IAD) networks to Spain and Italy. This has further cemented the company’s position as the fastest-growing Independent ATM Deployer with the largest geographical expansion in Europe.
Euronet already has market presence in other European countries such as Romania, Greece, Croatia, Poland, Germany, Czech Republic, Ukraine and Bulgaria. The latest expansion takes the tally of the company’s footprint to 10 countries.
The entry into these two countries was dependant on the granting of a European Payment Service Directive (PSD) e-money license, which the company received in 2011. The expansion into Spain and Italy also represents the debut of the company’s electronic funds transfer (EFT) unit in these nations.
This is the first time the company has undertaken IAD network deployment without a sponsor bank. This was made possible by the granting of e-money license along with the authorization for direct membership with Visa (V - Free Report) and MasterCard (MA - Free Report) , which eliminated the need for a sponsor bank to obtain ATM, debit and credit card transactions.
The PSD license is important for Euronet since it eliminates the company’s dependence on sponsor banks. This, in turn, gives the company complete control over the implementation process. Additionally, it reduces the lead time taken while penetrating a new market.
The company already has 18 years of operating experience in the field. It keeps the convenience of customers in mind while opening new ATMs. Moreover, most of its new ATMs are situated in off-bank locations with high traffic, which makes these easily accessible and convenient options.
Euronet, which completes with Moneygram International Inc. (MGI - Free Report) and The Western Union Company (WU - Free Report) , currently carries a short-term Zacks #3 Rank (Hold).