Euronet Worldwide – Ria Money Transfer join Ripplenet

On April 30th, Euronet Worldwide Inc published its Q1 2019 Earnings results. Thanks to XRP community member ANT1 (twitter handle @ANT159694954) we now have the transcript of the earnings call made as well as the slides presented.

According to wikipedia, Euronet is a US provider of electronic payment services with headquarters 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.

Euronet statistics (2016):

Revenue: $1,958.6 million
Operating income: $249.8 million
Net income: $174.4 million
Total assets: $2.706 billion
Total equity: $900.5 million
Number of employees: 5,600

According to the report, Euronet signed an agreement to join Ripplenet to power global payments using blockchain technology.

Moreover, according to Michael J. Brown, Chairman, Chief Executive Officer and President of Euronet:

“Payments disruptors across several payment categories have already taken advantage of our Digital Integrated Payments Cloud. Some examples include companies ranging from software and media to card processing and account withdrawal to alternative payment and money transfer, and we’ve added several new integrations into our cloud this quarter.”

He then continued to mention a few examples of these integrations. One of them was about Ripple and Ria money transfer:

“The fourth example is Ripple. We signed an agreement with Ripple that gives a Ripple access to Ria’s global physical and digital footprint, while also allowing Ria’s customers to connect and transact with Ripple’s network which includes more than 200 financial institutions worldwide.”

Ria Money Transfer is a subsidiary of Euronet, which specializes in money remittances. Ria initiates transfers through a network of agents and company-owned stores located throughout North America, Latin America, Europe, Asia-Pacific, Africa and online. The company opened its first store in 1987 and has since grown to become one of the largest money transfer service in the world. Ria currently serves customers in 144 countries through more than 314,000 locations worldwide

When asked about the Ripple partnership, Rick L. Weller, Executive Vice President and Chief Financial Officer of Euronet, replied:

“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.”

Michael J. Brown then added:

“We connected up Ripple in three weeks using older technology. I mean they told us, our own people told us it’d be three, four months of time to certify a connection. And we did this sucker in three weeks. So that just gives you an idea, we can offer that same kind of utility to anybody else out there.”