Euronet’s revenue continued to grow in Q3 2021, reaching $816.6m and increasing 23% compared to the same period last year. However, money transfer revenue growth, which includes Ria and XE, slowed down compared to previous quarters as lockdowns and other restrictions due to Covid-19 continue to impact Asia and the Middle East.
Our main takeaways:
- Money transfer revenue grew 9% compared to Q3 2020. While revenue from US and European outbound transactions grew by 18%, Asia Pacific and the Middle East posted a 32% decline, mostly due to shelter-in-place orders to limit the spread of coronavirus. EBITDA for the segment was down 20%, primarily due to the declines in Asia.
- Digital continues to make the headlines. Digital transactions revenue grew 58% in the quarter, with account deposit transactions rising by 31% and making up for 29% of the overall Money Transfer segment’s cross-border principal. The deposit account network now reaches 3.6 billion bank accounts and 416 million mobile wallets. Thanks to new partnerships with key wallets such as GCash and PayMaya in the Philippines and PayTm in India, we can expect the latter number to rise considerably over the next quarters.
- Euronet continues to focus on partnerships to both expand its agent network’s footprint and to strengthen its position as a digital cross-border payments enabler. In addition to new post office deals in India, Vietnam, Uganda and Bhutan, the company also partnered with the online money transfer provider Azimo to supplement Azimo’s payout network. On the digital side, the company launched money transfer services to the 500,000 users of the Spanish neobank Bnext and also partnered with Microsoft Dynamics and Sage Intacct to offer real-time payments capabilities through XE.
- Euronet remains focused on leveraging its money transfer network to broaden its usage both into B2B but also as rails for other providers.