Euronet Worldwide, Inc.’s (EEFT Quick QuoteEEFT ) digital payments business segment epay announced the integration of PayPal QR Code in their point-of-sale solution. This unique solution is already active in Germany and is expected to go live in other markets as well.
With this, Euronet is enhancing its portfolio of mobile payment solutions for the brick-and-mortar retailers. It is also providing retail partners with access to a potential customer base of 29.1 million active PayPal customers in Germany and above 400 million active customers across the globe.
Retailers who activated epay’s checkout integration software can now add PayPal’s QR Code at the point-of-sale with present and future payment options from a singular source. This obviously decreases the complications that retailers have to go through while offering various payment methods at the point-of-sale.
PayPal can enable merchants to boost their point-of-sale solutions with the new PayPal QR Code. The customers’ expectation of making seamless transactions has evolved to a great extent over the past few years. They will be able to leverage this safe and secure payment method.
The epay segment also performed well for the last many quarters. In 2020, the same contributed 33.7% to the company’s total revenues on higher transactions, expansion of digital media products and SaaS solutions. epay gained traction from this strategy of boosting digital channel distribution in certain markets during 2020.
Some of the most significant product distribution expansions in the unit were enabled by mobile wallets. The segment delivered its fourth consecutive quarter of double-digit growth from continued sales of mobile and digital media content in the second quarter of 2021. Transactions from the same grew 35% in the last reported quarter.
We expect the momentum to continue on the back of robust online and in-app sales of its digital media products as well as the surging retail sales of the same product category.
The segment has a pipeline of upcoming distribution agreements. All these initiatives strengthen its prospects.
Euronet’s shares have gained 39.5% in a year’s time, outperforming its industry’s growth of 13.9%.
Image Source: Zacks Investment Research
The company has a Zacks Rank #5 (Strong Sell), currently.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
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