Yahoo Finance Euronet's (EEFT) Ren to Boost Onnipro's Card Issuing Expertise
Euronet Worldwide, Inc. EEFT recently inked a deal with one of Brazil’s leading payment processing solutions providers and a subsidiary of the Onnitech Group, Onnipro. Under this multi-year agreement, the Ren payments platform of EEFT will be utilized by Onnipro to enhance its card-issuing capabilities and benefit existing clients as well as attract new ones.
Ren, powered by its established expertise in global card issuing and processing as well as a global customer base, extends a highly scalable and flexible platform. This platform is engineered for industry-leading uptime, effortless integration with global payment networks and advanced transaction processing capabilities. As a result, an extensive set of benefits awaits Onnipro as a result of the recent partnership.
Ren will enable Onnipro to expand from a closed-loop provider, currently issuing the widely accepted domestic card brand (Elo) across Brazil, to a provider of open-loop card programs and processing via Visa V and Mastercard MA networks. This shift is likely to allow Onnipro to bring more diversity and security within its payment options, provided it adheres to the regulatory and network standards for open-loop card programs.
Additionally, Ren will bring extensive expertise in card network integration to Onnipro, ensuring seamless conversion of authorization messages between Onnipro and card platforms in a standard format, thereby paving the way for streamlined processing. Such assistance will inevitably further solidify Onnipro’s market position as a leading card issuer in Brazil and equip it to address the evolving demands of the Brazilian and global markets.
Regarding benefits to Euronet, the recently inked deal is expected to expand the reach of its Ren platform as Onnipro remains the card processor for Brazil's largest employee benefits company serving more than 12 million customers. Increased utilization of the EEFT platform may drive the revenues of the EFT Processing segment, of which Ren is a part of. The unit accounted for around 25% of Euronet’s overall revenues in the first quarter. Also, Onnipro seems to be an apt partner to Euronet as the companies share an aim of transforming the payments landscape of Brazil and other international markets.
Ren was designed to thrive in the dynamic digital payments environment, encompassing real-time settlements and new payment methods like QR codes, PIN, and biometrics. It primarily caters to financial institutions, central banks and fintech companies. Ren is available as an on-premise solution, allowing businesses to install the platform in their data centers or as a Software as a Service, enabling development teams to access it via APIs in Euronet’s global data centers. The platform’s versatility allows it to function as a payment hub or provide core banking services such as issuing, merchant acquiring, transaction switching and ATM management.
Shares of Euronet have gained 4.4% year to date against the industry’s 2.8% decline. EEFT currently carries a Zacks Rank #2 (Buy).
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