Euronet (EEFT) Ria to Sponsor Inter Milan, Lift Brand Awareness
Euronet Worldwide, Inc. EEFT recently announced that its subsidiary, Ria Money Transfer, agreed to be an official sponsor of FC Internazionale Milano, the famous Italian football club commonly known as Inter Milan. The deal is likely to continue through the 2025 season.
The sports sponsorship is expected to boost Euronet’s Ria brand’s awareness internationally, which will benefit the company’s Money Transfer segment. This unit encompasses Xe, Dandelion and Ria Money Transfer businesses. The deal is expected to be crucial for Euronet as Inter Milan has a fanbase of more than 500 million around the globe.
Ria has a presence in more than 180 countries and territories, making it a perfect fit for the football club. The move from Euronet is a prudent one, given the fact that the global remittance market is expected to grow rapidly in the coming days. Its Money Transfer segment accounted for 42% of its total revenues in 2022. The company has also been expanding its digital presence and bolstering its remittance service capabilities.
Payments technology juggernaut Visa Inc. V recently revealed in its “Money Travels: 2023 Digital Remittances Adoption” research report that digital remittances are becoming the most sought-after method of payments internationally. This is expected to create huge opportunities for companies providing money transfer services like Euronet, MoneyGram International, Inc. MGI and The Western Union Company WU.
The certainty and security of digital transactions is expected to drive the demand for digital remittances. While traditional modes of money transfer expose one to unexpected delays and higher fees charged by banks, the digital option makes the process more seamless and secure.
Given the stiff competition prevalent in the U.S. market, MoneyGram is focusing on diversifying its revenue mix geographically to align with the global remittance market growth and pursue higher-margin corridors. MGI leverages partnerships and collaborations to boost its remittance business.
Western Union has a significant grasp on international money transfers and introduces unique products to capture new customers. For example, WU collaborated with Australian fintech Beforepay to enhance cross-border money transfers with a Send Now, Pay Later service.
Price Performance & Zacks Rank
Euronet shares have gained 41.3% in the past six months compared with the 3.6% rise of the industry. The company currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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