Euronet plans to extend money transfer services in Q1 of 2024
Euronet Expands Global Payments Network with Digital-First Strategy
Euronet, the parent company of Ria and Xe, has reported a significant 9% increase in revenues to $857 million in Q1 2024, primarily driven by its Electronic Funds Transfer (EFT) segment. This growth is a testament to the company's digital-first strategy and strategic acquisitions, such as the recent acquisition of CoreCard.
The acquisition of CoreCard, valued at $248 million, provides Euronet access to a $10 billion credit card market with high issuing margins. This integration of CoreCard’s technology with Euronet’s existing infrastructure is expected to accelerate product development and cost synergies for fintech partners worldwide.
Euronet's expansion plans focus on leveraging this acquisition to enhance its global payments infrastructure and diversify revenue streams. The company aims to expand its footprint in credit card processing and cross-border payments by integrating CoreCard’s cloud-native platform. This move will enable end-to-end fintech solutions for embedded finance and remittance services worldwide.
In the Money Transfers segment, revenues rose by 7% to $384.6 million in Q1 2024, with a corresponding 8% increase in transactions to 40.6 million. The segment saw an 8% growth to $44.5 million in Q1 2024, giving an adjusted EBITDA margin of 11.6%. Overall, Euronet achieved a 17% rise in its adjusted EBITDA to $108.8 million in Q1 2024, resulting in a margin of 12.7%.
Euronet's digital transactions have been boosting transfers across its global network, a trend that executives believe could lead to higher related travel spend in the upcoming quarters due to a trend in wage growth versus declining inflation.
For those interested in Euronet's extensive research and analysis on cross-border payments globally, a free account is available. Account creation involves setting up a password, and access to Euronet's industry-leading newsletter is included.
Euronet executives are planning to expand into new markets to grow their market share in both remittances and B2B global payments. The company's digital infrastructure development, geographical expansion, and disciplined capital allocation are key elements of this strategy.
References: [1] Euronet Worldwide Inc. (2024). Euronet Worldwide Announces First Quarter 2024 Results. Retrieved from https://www.euronetworldwide.com/investors/news-releases/news-release-details/euronet-worldwide-announces-first-quarter-2024-results [2] Finextra (2024). Euronet acquires CoreCard to expand US footprint and enter credit card market. Retrieved from https://www.finextra.com/pressarticle/89509/euronet-acquires-corecard-to-expand-us-footprint-and-enter-credit-card-market [3] Payments Cards & Mobile (2024). Euronet Worldwide acquires CoreCard to boost global payments capabilities. Retrieved from https://www.pcmk.com/news/euronet-worldwide-acquires-corecard-to-boost-global-payments-capabilities/ [4] LinkedIn (2024). Joe Baker. Retrieved from https://www.linkedin.com/in/joebaker/ [5] Yahoo Finance (2024). Euronet Worldwide Inc. (EEFT). Retrieved from https://finance.yahoo.com/quote/EEFT/balance-sheet?p=EEFT
- Following Euronet's acquisition of CoreCard, the company is envisioning an expansion into the $10 billion credit card market, aiming to boost its income from investing in new business areas.
- Euronet's digital-first strategy, demonstrated by its recent acquisition of CoreCard, is anticipated to propel its fintech partners with accelerated product development and significant cost synergies in the field of finance.
