Euronet's (EEFT) Arm Forms Alliance With Paytm Payments Bank
Euronet's (EEFT) Ria Money ties up with Paytm to establish its dominance in the Indian remittance market.
Euronet Worldwide, Inc.’s EEFT segment Ria Money Transfer forged an alliance with the cross-border money transfer leader Paytm Payments Bank to allow customers to send funds in real time. This will be done via Ria Money’s wide network to Paytm’s mobile wallet. Ria Money became the first money transfer company to connect with around 333 million wallet users of Paytm, which obviously bolstered its geographical reach.
This is one of the most significant relationships that was formed in the payments industry recently as both companies have the potential to introduce changes in the Indian remittance market. The remittance market in India has ample scope for both parties. As the Indian diaspora is one of the biggest overseas communities across the globe with skilled, semi-skilled and unskilled Indian migrants, the country received more than $83 billion worth remittances last year.
Also, with this collaboration, Paytm becomes the country’s first platform to get international money transfer directly to a digital wallet.
Customers living abroad can now send funds to KYC-verified Paytm wallets in India via the Ria Money Transfer app or website or by going to one of the 490,000 Ria retail points. The money transfers done in real time offer advanced features like name matching and account validation.
Ria Money, known for providing fast and safe payment environments and omnichannel experiences, is now poised well to penetrate further in the Indian diaspora across the world. Ria Money always pays attention to their customers’ requirements and how they need a safe way to send money back home. This makes it a leading company in the industry, which is evident from the support it provides to more than 3.6 billion bank accounts, and 410 million mobile and virtual accounts.
This latest activity builds on its digital expansion strategy of widening its services to mobile wallets. The mobile wallet industry processes around $2 billion per day. Experts project that $1 trillion will be processed by 2023 on an annual basis.
The unit runs the second biggest payments network and is constantly taking initiatives to boost its portfolio and expand its capabilities. It strives hard to ensure that customers can send funds wherever needed across the world in a safe and effective manner.
Last week, it forged an alliance with Nobel Financial Inc., which is part of Nobel Ltd for transitioning 117 Nobel agents to the Ria Money brand, platform and network in the United States.
In June, Ria Money launched instant payments in Brazil. This was done through the nation’s new PIX real-time payments network. In May, it extended its distribution network through an alliance with Mooney to further establish its dominance by providing services to the latter’s 45,000 points of sale and 20 million customers in Italy. Euronet also expanded its network with the launch of the Ria Money Transfer app in Chile.
Kroger selected Ria Money as its second money transfer service provider in the United States at all its approximately 2,000 locations.
The business showed its effectiveness in bridging the gap between digital and physical transactions.
It is massively contributing to the parent company’s Money Transfer segment, which is well-poised for growth on the back of physical and digital distribution channels, acquisitions, etc.
Zacks Rank & Price Performance of Peers
Shares of this presently Zacks Rank #5 (Strong Sell) company have gained 46.7% in the past year, outperforming the industry’s growth of 17%. The stock should continue its rally on the back of its solid EFT, epay and Money Transfer segments as well as increased digital transactions.
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Some better-ranked stocks in the same space are CIT Group Inc. CIT, XP Inc. XP and HoulihanLokey, Inc. HLI, earnings of which managed to deliver a trailing four-quarter surprise of 224.59%, 24.44% and 38.33%, respectively, on average. All the companies presently hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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