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EEFT's Dandelion & Citi Tie Up to Power Global Digital Wallet Payouts
ZACKS· 2025-10-01 15:11
Core Insights - Euronet Worldwide, Inc. (EEFT) has partnered with Citi to enhance cross-border payments through the integration of Citi's WorldLink Payment Services with EEFT's Dandelion digital wallet network, enabling nearly instant payouts globally [1][10] Group 1: Partnership and Market Strategy - The initial rollout of the partnership targets key markets such as the Philippines, Indonesia, Bangladesh, and Colombia, where mobile wallets are increasingly preferred for financial transactions [2][10] - The collaboration aims to provide a faster and more efficient payment solution for various uses, including remittances, payroll, expense reimbursements, social benefits, customer refunds, and gig-economy payouts, while reducing costs and delays associated with traditional transfers [2][3] Group 2: Benefits for Clients - Corporate and public sector clients will benefit from speed, reliability, and transparency, allowing quicker access to funds for beneficiaries using digital wallets, while businesses can expect smoother operations and predictable cash flows [3] - The initiative expands Citi's WorldLink capabilities to over 150 digital destinations, reinforcing its leadership in real-time global payments [3] Group 3: Company Performance and Growth Potential - EEFT reported a 29% year-over-year growth in digital transactions within its money transfer segment in Q2 2025, indicating strong performance in the digital payments market [4][10] - The partnership is expected to enhance EEFT's transaction volumes as digital wallets gain traction in emerging markets, potentially leading to significant growth and setting new benchmarks for international money transfers [5] Group 4: Competitive Landscape - Competitors in the digital wallet space include Mastercard, Visa, and PayPal, each adapting to the evolving market with their own strategies and innovations [6] - Mastercard is focusing on secure integration of card details into digital wallets and expanding into the Buy Now, Pay Later trend [7] - Visa is enhancing its digital wallet ecosystem through tokenized payments, resulting in a 9% year-over-year growth in processed transactions in Q2 2025 [8] - PayPal's net revenues increased by 5% year-over-year in Q2 2025, alongside a 2% growth in active accounts, showcasing its competitive position in the digital wallet market [9]
Buy 5 Financial Technology Giants Amid Fed's Low-Interest-Rate Regime
ZACKS· 2025-09-24 13:25
Federal Reserve and Interest Rates - The Federal Reserve cut the benchmark lending rate by 25 basis points to a range of 4-4.25% on September 17, marking the first rate cut of the year [1] - The Fed's dot-plot indicates two additional rate cuts of 25 basis points each in 2025 and one in both 2026 and 2027 [1] Fintech Industry Overview - The fintech sector benefits from a low-interest-rate environment, which fosters technological improvement and product innovation [2] - The growth of mobile and broadband networks, along with advancements in AI and machine learning, positions fintech for significant expansion [3] Investment Recommendations - Five fintech companies are recommended for investment based on favorable Zacks Ranks: CoStar Group Inc. (CSGP), PayPal Holdings Inc. (PYPL), SoFi Technologies Inc. (SOFI), Interactive Brokers Group Inc. (IBKR), and Robinhood Markets Inc. (HOOD) [4][9] - All five companies exhibit strong revenue and earnings growth expectations for the current year [9] CoStar Group Inc. (CSGP) - CSGP benefits from a resilient subscription business and a strong portfolio of marketplaces, with global traffic reaching 141 million in Q2 2025 [7] - New product launches, such as Matterport 3D tours and AI voice search, enhance customer experience [8] - Expected revenue and earnings growth rates for CSGP are 18.1% and 21.1%, respectively, for the current year [10] PayPal Holdings Inc. (PYPL) - PYPL is experiencing robust growth in total payment volume and strengthening customer engagement [11] - The company leverages AI for fraud detection and operational efficiency, contributing to an expected revenue and earnings growth rate of 4% and 12.5%, respectively, for the current year [13] SoFi Technologies Inc. (SOFI) - SOFI is positioned as a leader in online banking services, benefiting from lower interest rates that encourage customer growth [14] - The expected revenue and earnings growth rates for SOFI are 31.7% and over 100%, respectively, for the current year [16] Interactive Brokers Group Inc. (IBKR) - IBKR's initiatives to enhance its global presence and product suite are expected to support revenue growth, with a projected CAGR of 6.5% by 2027 [17] - Expected revenue and earnings growth rates for IBKR are 8.9% and 11.4%, respectively, for the current year [19] Robinhood Markets Inc. (HOOD) - HOOD operates a financial services platform that allows users to invest in various assets, benefiting from increased retail market participation [20][21] - The expected revenue and earnings growth rates for HOOD are 35.4% and 41.3%, respectively, for the current year [22]
Mastercard Strengthens Digital Push With GCash 'Tap to Pay' Launch
ZACKS· 2025-09-04 16:21
Core Insights - Mastercard is expanding its global digital payments presence through the launch of GCash's 'Tap to Pay' services in partnership with Alipay+ and GCash, enabling contactless payments at over 150 million Mastercard acceptance locations worldwide [1][9] - The rise of digital wallets is enhancing financial inclusion, with Mastercard's involvement providing trust, security, and global acceptance as mobile payments grow beyond local markets [2] - This collaboration strengthens Mastercard's position in digital commerce, broadening its transaction network to meet the increasing demand for seamless payment solutions in emerging markets [3] Financial Performance - In Q2 2025, Mastercard's cross-border transaction volume increased by 15% year over year, with net revenues growing by 17% in the same period [4][9] - The company's payment network net revenues also saw a year-over-year growth of 13% [4] - Year-to-date, Mastercard's shares have risen by 12.6%, outperforming the industry average increase of 4.4% [7] Competitor Analysis - Visa has been proactive in its digital evolution, with a 12% year-over-year increase in cross-border volume in Q3 of fiscal 2025 [5] - PayPal's total payment volume grew by 6% year over year in Q2 2025, with its digital wallet features directly connecting with users [6] Valuation Metrics - Mastercard trades at a forward price-to-earnings ratio of 32.73, which is above the industry average of 22.11, and carries a Value Score of D [10] - The Zacks Consensus Estimate for Mastercard's 2025 earnings suggests an 11.7% growth compared to the previous year [12]
Buy 5 Mobile Payments Stocks and Hold for Long Term to Reap Benefits
ZACKS· 2025-08-15 13:26
Industry Overview - The mobile payments market is experiencing rapid growth due to the shift from cash to digital transactions, driven by convenience and security [1][9] - Increased internet penetration and smartphone usage are contributing to the adoption of digital payments, transforming everyday transactions [3] - The industry is diversifying with contactless payment options such as mobile wallets, biometrics, and QR codes, enhancing the global digital payments market [4] Company Insights - **PayPal Holdings Inc. (PYPL)**: - Benefiting from robust growth in total payment volume and strengthening customer engagement [10][11] - Expected revenue and earnings growth rates of 4% and 12% respectively for the current year [12] - **JPMorgan Chase & Co. (JPM)**: - Projected net interest income (NII) growth at a CAGR of 2.9% by 2027, supported by business expansion and loan demand [13] - Expected revenue and earnings growth rates of -0.2% and -1.3% respectively for the current year [15] - **Intuit Inc. (INTU)**: - Strong momentum in Online Services revenues driven by Mailchimp, payroll, and Money [16] - Expected revenue and earnings growth rates of 11.7% and 13.7% respectively for the current year [19] - **ACI Worldwide Inc. (ACIW)**: - Powers electronic payments for over 5,000 organizations globally, executing $14 trillion in payments daily [21][22] - Expected revenue and earnings growth rates of 8% and 7.6% respectively for the current year [22] - **Remitly Global Inc. (RELY)**: - Engaged in providing digital financial services, with an expected revenue growth rate of 27.9% and earnings growth of over 100% for the current year [23][24]
What's Fueling PayPal's Post-Earnings Skepticism?
Benzinga· 2025-07-30 18:41
Core Viewpoint - PayPal Holdings experienced a significant stock price decline despite exceeding earnings expectations and raising full-year profit guidance, primarily due to concerns over slowing growth in branded checkout Total Payment Volume and a noted softening in U.S. retail spending [1][7]. Financial Performance - PayPal reported an adjusted EPS of $1.40, exceeding analyst estimates by $0.09 and the midpoint of its guidance range by $0.10 [4]. - Total Payment Volume (TPV) reached $443.5 billion, approximately 3% higher than projections, while transaction margin dollars exceeded forecasts by 2% (or $78 million) [5]. - Active accounts totaled 438 million, with a slight sequential improvement in monthly active users of 52% [5]. - Management raised full-year adjusted EPS guidance to $5.15–$5.30, indicating a 12.5% growth at the midpoint, up from prior guidance of $4.95–$5.10 [5]. Analyst Ratings and Price Targets - Patrick Moley of Piper Sandler maintained a Neutral rating with a price forecast of $74 [2]. - Andrew Boone of Citizens JMP Securities reiterated a Market Outperform rating but adjusted his price forecast down from $110 to $100 [3]. Growth Concerns - The slowdown in branded checkout TPV growth to 5% from 6% in the previous quarter and the CFO's comments on softening U.S. retail spending contributed to the stock's nearly 9% drop post-earnings [7]. - Analysts noted that while TPV growth was strong, transaction margin dollars showed signs of deceleration, which may impact future performance [10]. Strategic Outlook - Moley expressed cautious optimism regarding PayPal's strategic shift to become an omnichannel commerce hub, though he warned that this transformation may require continued investment that could pressure margins [8]. - Boone highlighted ongoing product innovation and improvements in consumer and merchant experiences as key to future growth, projecting gradual reacceleration in growth [14]. Venmo Performance - Venmo's TPV grew 45% year-over-year, with monthly active accounts for Venmo debit cards rising 40%, indicating its critical role in PayPal's long-term growth strategy [9].
Can Mastercard Stay Ahead in the Race Toward a Digital Wallet Future?
ZACKS· 2025-07-11 15:51
Core Insights - Mastercard is transforming into a tech-forward payments enabler as physical cards decline in usage, focusing on digital wallets and tokenized payments [1][2] Group 1: Company Strategy - Mastercard is enhancing its Digital Enablement Service and Tokenization services to help banks and fintech securely integrate card details into digital wallets like Apple Pay, Google Pay, and Samsung Pay [2] - The company is engaging in the Buy Now, Pay Later trend and exploring Central Bank Digital Currencies (CBDCs) and crypto initiatives to remain relevant in a changing landscape [2][8] - By partnering with major tech companies, Mastercard is ensuring its credentials are integrated into digital ecosystems, facilitating tap-to-pay transactions and launching APIs for smoother checkout experiences [3] Group 2: Technology and Security - The focus on cybersecurity, biometric authentication, and AI-powered fraud detection is critical for building trust in the digital payments space [4] - Mastercard's global network and strategic collaborations position it well for a cardless future, emphasizing the need for faster innovation to stay ahead of fintech and tech-native competitors [4] Group 3: Competitive Landscape - Competitors like Visa and PayPal are also advancing in the digital wallet space, with Visa focusing on real-time payments and PayPal enhancing its direct user engagement through its own digital wallet [5][6] Group 4: Financial Performance - Year-to-date, Mastercard's shares have increased by 7%, outperforming the industry's rise of 5.4% [7] - The company trades at a forward price-to-earnings ratio of 32.36, above the industry average of 22.76 [9] - The Zacks Consensus Estimate for Mastercard's 2025 earnings indicates a growth of 9.5% from the previous year, with recent upward estimate revisions [10]
Visa in a Wallet-Driven World: Can It Stay Indispensable?
ZACKS· 2025-07-10 16:36
Core Insights - Visa Inc. is adapting to a market shift towards digital wallets and cryptocurrency, moving beyond traditional card-based payments [1][4] - The company has implemented the Visa Token Service to enhance security and facilitate transactions with digital wallets [2] - Visa is expanding its presence in the cryptocurrency sector through partnerships and the introduction of crypto-linked cards [3] Digital Strategy - Visa's digital strategy includes the Visa Token Service, which replaces sensitive card information with secured tokens, allowing integration with platforms like Apple Pay and Google Pay [2] - The company reported a 9% year-over-year growth in processed transactions in Q2 FY25, indicating successful adaptation to digital wallet integration [8] Cryptocurrency Initiatives - Visa is actively collaborating with various cryptocurrency platforms and exploring stablecoin transactions on blockchain networks [3] - The company's extensive acceptance network positions it well to adapt to the evolving financial landscape [3] Competitive Landscape - Competitors such as Mastercard and PayPal are also enhancing their digital wallet offerings, with Mastercard focusing on tokenization and contactless payments [5] - PayPal operates its own digital wallet with features like Venmo and crypto trading, directly engaging with users [6] Financial Performance - Visa's shares have increased by 13.2% year-to-date, outperforming the industry growth of 5.4% [7] - The forward price-to-earnings ratio for Visa is 28.76, higher than the industry average of 22.76 [10] - The Zacks Consensus Estimate for Visa's fiscal 2025 earnings suggests a 12.9% increase compared to the previous year [11]