Euronet’s Money Transfer segment, which includes Ria and XE, reported a good set of results for 2020 despite the challenging year. Revenue for the segment, which now accounts for slightly less than 50% of total Euronet revenue, rose 8%. Total cross-border principal rose 23%, with domestic transfers losing share to higher value and higher margin international flows.
What drove this growth and what can we expect for 2021?
- Digital makes the headlines (once again)
Digital transactions rose 103% year-on-year. Ria’s international money transfers grew 16% for the whole year and 8% of total cross-border principal went through Ria’s mobile app and website.
- Developing a comprehensive pay-out network
Both physical and digital pay-out channels were an area of focus. The agents’ network expanded with 24 new correspondents launched across 21 countries, including post offices in Botswana, Indonesia, Moldova and Romania.
On the digital side, the account deposit network, allowing customers to send funds directly to bank accounts and mobile wallets, experienced 36% volume growth. Euronet expanded its pay-out reach adding four mobile money wallets across Africa via its deal with Thunes and Terrapay, as well as new banks and payments processors in emerging markets.
- Uncertain prospects for the Walmart deal
The Walmart deal did not add much international business to Euronet’s Ria since it only started offering international funds transfers through the retailer slightly over a year ago. Before that Ria’s Walmart offering was for domestic payments. For this reason, Euronet does not expect a significant impact from Western Union’s addition to Walmart2World.