Euronet Worldwide released there Q1 earnings report just 2 days ago on April 30th. This was a good find by a member of the XRP community PandaRippleXRP
— 🐼PandaRippleXRP🐼 (@RipplePandaXRP) May 1, 2019
So who is Euronet Worldwide? Euronet Worldwide is a US provider of electronic payment services with headquartered in Leawood, Kansas. It offers automated teller machines (ATM), point of sale (POS) services, credit/debit card services, currency exchange, and other electronic financial services. Among others, it provides the prepaid subsidiaries Transact, PaySpot, e-pay, Movilcarga, TeleRecarga, and ATX.
Let’s jump right into the report.
Euronet announced that they signed an agreement with Ripple that would give Ripple access to Ria’s global physical and digital footprint. This agreement would also allow Ria’s customers to connect and transact with Ripple’s Network which includes more than 200 financial institutions worldwide. Ria is a money transfer company who is a subsidiary of Euronet. Ria initiates transfers through a network of agents and company-owned stores located throughout North America, Latin America, Europe, Asia-Pacific, Africa and online. Ria currently serves customers in 144 countries through more than 314,000 locations worldwide.
Michael J. Brown the chairmen and Chief Executive Officer and President were asked about the integrations with Ripple and Alipay for cross border money transfer and he stated:
Absolutely. I think we may be — I mean this might be like one of those top secret next — I wouldn’t call it a next division, but this could be very substantial to this company, because it gets us in then there and it allows us to sell our other products, too. So whether this is money transfer, maybe this is as paper compliance, maybe this is access to our ATMs, access all the content that Kevin has on epay, this enables us to disrupt this industry further. And there are a lot of people who want to be the disruptor. And the banks on the flipside are interested in it because they don’t want to be disrupted, and they’re getting disrupted. You can see it every day.
Rick L. Weller who is the Executive Vice President and Chief Financial Officer was asked about the partnership with Ripple and this is what he had to say:
No, you know what it does, it’s kind of a good thing for both us and them. They’ve got connections to lots of banks out there, and we — as you know, we’ve got connections to even more banks, OK, through our money transfer payout services there. So whether we’re talking about another correspondent that’s a traditional bank or it’s someone like Ripple, they provide a means to get into a bank to deliver a payment. And in their case, it’s a little bit more to a to an account, account to account transfer. So it would accommodate some of those customers interest in that regard. So we see it as being another addition to our 370 some thousand payout locations.
As we’ve said before, when you think of money transfer, money transfer product is really equivalent to payout, not origination. You have to be able to pay — have someone pick up the money, and so we continue to take a look at folks like Ripple or others that are in the market that want to join with us to be able to get some mutual benefit out of it, and it then contributes to that comment Mike made earlier on the margins. You bring in these type of transactions. It’s an efficient cost infrastructure. We leverage our business. Those monies drop to the bottom line.
So there isn’t anything what I would — I would put in the category of let’s say, gee-whizzy. If there is a gee-whizzy, it’s because our payment cloud makes the connection with those types of people very easy and the exchange of transactions. And then also kind of in there it says, oh look, it demonstrates for you too, oh look, we know how to do blockchain too. So there’s nothing like let’s call it rocket science about a blockchain in fact. So it adds to our overall network.
The best take away from all of this was when Michael J. Brown said his people from Euronet told him he would take 3,4 maybe even 5 months to get there old system connected to RippleNet, but Ripple was able to have them up and running in 3 weeks! This is amazing!
You can read the full transcript here: Euronet Q1 Report
Walmart-2-Walmart leverages the retailer’s existing footprint and technology and is powered by Ria, a Euronet subsidiary and a leading global provider of money transfers. Ria is the licensed money transfer operator for all Walmart-2-Walmart transactions, and Walmart acts as the authorized agent of Ria.