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Euronet's (EEFT) REN, Jalin to Enhance Payments Platform

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·4 min read
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Euronet Worldwide, Inc.’s EEFT REN payments platform will be utilized by the largest state-owned bank-switching network in Indonesia, PT Jalin Pembayaran Nusantara (“Jalin”).

Studies suggest that 85% of customers in Southeast Asia were using digital payments platforms in the beginning of 2021. Digital payment became a much-preferred option around the world because it offers hassle-free, cashless transactions that can be completed in a few simple steps. It is a fact that the COVID-19 pandemic accelerated the use of cashless payments mode. With digital payments, people can avoid the risk of exposure to the coronavirus. Even though most of the population across the globe is vaccinated, digital payments are poised to grow given the conveniences they provide.

Owing to demand for cashless payments from participant financial institutions, Jalin is set to adopt a platform modernization strategy that will enable it to launch services and improve the current offerings.

Euronet and the REN platform were given the project after an RFP process. The financial transaction services player has the ability to boost Jalin and turn it into a digital enabler. The unveiling is expected to reduce fraudulent activities and connect individuals to financial and non-financial ecosystems.

For dealing with large transaction volumes, Euronet is using the REN platform to support transaction switching from POS terminals, QR codes and ATMs as well as activate digital wallets, etc. The services will be available through APIs as well.

This unique project will mitigate workloads from the current system to REN and start new services like ATM driving and processing of digital wallet-based QR code payments.

In the initial stage of the project, cross-border QR code payments will be activated, which include developing an incoming and outgoing payment interface with the central infrastructures of Thailand and Malaysia. Other services will be activated through the next 12 months.

Digital payment is undoubtedly one of the most attractive new-normal trends that customers adopted and will continue to use even in the future. Better authentication controls, centralized clearance and networks will make payment technologies inexpensive and lead to mass acceptance of this fast-growing payment technology.

Jalin is one of Southeast Asia's most digitally savvy payment networks while Euronet’s REN platform is the perfect fit for this particular move. This latest move highlights the capacity of EEFT’s REN payments technology.

In September, EEFT announced that it will license its REN payments platform to the Las-Vegas based company Marker Trax, LLC to serve physical casinos, virtual casinos and the sports-betting operators. In June, Euronet announced that its REN Connect software will allow the Bank of Philippine Islands (BPI) to take part in the region’s real-time payments network called Instapay. The currently Zacks Rank #3 (Hold) player has also been gaining from constant expansions across the globe and strong results of the Electronic Funds Transfer and Money Transfer segments. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Price Performance

Shares of EEFT have lost 13.7% in a year’s time against its industry’s growth of 16.9%.

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Zacks Investment Research

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Stocks to Consider

Some better-ranked stocks in the same space are Alerus Financial Corporation ALRS, Houlihan Lokey, Inc. HLI and Guild Holdings Company GHLD. While Alerus Financial and Houlihan Lokey sport a Zacks Rank of 1 at present, Guild Holdings carries a Zacks Rank #2 (Buy).

Alerus Financial is a financial services company. Through its subsidiary Alerus Financial, National Association, ALRS offers financial solutions to businesses and consumers. ALRS’ earnings managed to beat estimates in three of its trailing four quarters (while missing the mark in one), the average beat being 23.58%.

Houlihan Lokey is an investment bank focusing on mergers and acquisitions, financings, financial restructurings and financial advisory services. HLI delivered a trailing four-quarter surprise of 39.53%, on average.

Guild Holdings Company provides financial services. GHLD’s bottom line managed to beat estimates in three of its trailing four quarters (missing the mark in one), the average beat being 57.31%.

While shares of Alerus Financial and Houlihan Lokey have gained 5% and 49.1%, respectively, the Guild Holdings stock has lost 3% in the past year.


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Euronet Worldwide, Inc. (EEFT) : Free Stock Analysis Report

Houlihan Lokey, Inc. (HLI) : Free Stock Analysis Report

Alerus Financial (ALRS) : Free Stock Analysis Report

Guild Holdings Company (GHLD) : Free Stock Analysis Report

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