Wise & Euronet: Leading the $850B Digital Remittance Revolution
A deep dive into the digital transformation of remittances—and the two stocks best positioned to profit.
Digital Disruption in the $850 Billion Remittance Industry
For decades, sending money across borders was slow, expensive, and inconvenient. High fees, long wait times, and limited options defined the remittance industry. If you wanted to send money internationally, you often had to rely on cash-based transfer services like Western Union (WU) or MoneyGram, which charged hidden fees and inflated exchange rates while requiring recipients to visit physical locations to pick up funds.
Today, digital-first solutions are reshaping the industry, making it cheaper, faster, and more accessible than ever before. Consumers are moving away from cash-based transactions in favor of digital remittance platforms that offer real exchange rates, lower fees, and instant transfers.
This shift is creating massive investment opportunities in companies that are leading the charge in digital remittances. Wise (WIZEY) and Euronet Worldwide (EEFT) are two of the best-positioned stocks in this space—Wise as a pure-play digital disruptor and Euronet as an omnichannel powerhouse combining cash and digital.
Meanwhile, other players like Intermex (IMXI) and Remitly (RELY) are also battling for market share, but they face unique challenges that make them less attractive investment opportunities right now.
The Digital Transformation of Global Remittances
The remittance industry has been slow to modernize, but the tide has turned. According to Payments & Commerce Market Intelligence (PCMI):
✔ In 2023, digital remittance volume surpassed cash volume globally for the first time (chart below).
✔ 82% of outbound remittances come from high-income countries, while 78% of inbound flows go to low- and middle-income economies.
✔ Remittance costs remain high at 6.3% per transaction, well above the UN’s target of 3%, leaving room for disruptors.
✔ The global remittance market exceeded $850 billion in 2023 and is expected to grow at an 8% CAGR through 2026.
Challenges Remain for Users
Even with digital advancements, many people still face barriers to accessing formal remittance channels. These challenges include:
Lack of banking access – Many individuals, particularly in developing regions, do not have a bank account, making it difficult to send and receive money digitally.
Geographic limitations – Those living in remote areas often lack access to financial institutions or reliable internet to use digital platforms.
Identification barriers – Many users lack formal identification, which can make it impossible to use traditional remittance services.
Why Digital Remittances Are the Future
Despite these challenges, digital remittance services offer significant advantages over cash-based alternatives:
✔ Better user experience – Digital platforms eliminate the need to visit physical locations and offer mobile apps for quick, seamless transfers.
✔ Lower costs – Digital providers operate with lower fees than traditional MTOs, helping users retain more of their money.
✔ Additional services – Many digital remittance platforms now offer bill payments, mobile top-ups, and financial services, improving convenience for users.
✔ Improved security – Digital transactions reduce fraud risks and theft associated with cash pickups.
Regulatory & Regional Disparities
Despite the benefits of digital remittances, adoption varies widely across regions due to financial exclusion, poverty, and political instability:
Latin America lags in digital adoption – Only 43% of remittance transactions in Latin America are digital, 9% below the global average.
Mexico relies heavily on cash – Just 30% of remittances to Mexico are received digitally, highlighting the gap in financial access.
As governments and fintechs work to increase financial inclusion, digital remittance services will continue to gain market share, benefiting companies like Wise and Euronet.
Why Wise (WIZEY) and Euronet (EEFT) Stand Out
✔ Wise (WIZEY) is the Amazon of cross-border payments, prioritizing low fees, customer value, and scale over short-term profits.
✔ Euronet (EEFT) is a financial infrastructure giant, leveraging Ria Money Transfer to compete with Western Union, while also building out a strong digital presence.
Each has different strengths, but both are winning in the cross-border payments revolution.
Wise (WIZEY): The Best Pure-Play Digital Remittance Stock
Wise is disrupting cross-border payments much like Amazon disrupted retail—by offering low-cost, transparent solutions while reinvesting for scale.
💡 A Better, Cheaper Model:
Wise charges as little as 0.4-0.6% per transaction, undercutting Western Union and banks.
It uses real exchange rates with no hidden fees, unlike traditional MTOs that profit from currency spreads.
Once users switch to Wise, they rarely leave.
Wise’s infrastructure claims platform partners as clients including Nu, Google Pay, IBKR and Standard Chartered.
💡 Built for the Future:
Wise offers multi-currency accounts, allowing users to hold and convert over 40 currencies—a feature that keeps customers sticky.
The Wise Account is a key differentiator, enabling businesses and consumers to seamlessly manage international finances.
Wise processes over $100 billion annually, growing at a 30%+ YoY rate.
Perhaps one of the greatest signs of alignment of interest with shareholders is the company’s reference to Owner Relations instead of Investor Relations.
Wise is making remarkable progress with its initiatives and expansion with inroads to Japan’s payment system, an Australian Financial Services license and an AD II license for India (removing the $5,000 cap on transfers out of India).
📊 Key Financial Metrics:
Forward P/E Ratio: 24.7x (reflecting its high growth potential).
Free Cash Flow (FCF) yield is relatively low at 4.2% due to the stock trading at higher price multiples.
Strong revenue growth, but reinvesting aggressively to expand global infrastructure so EPS is expected to remain steady in the medium term. The company, however, expects to grow underlying income over the medium-term at approximately 15-20% per year.
🚨 Risks:
Heavily reliant on transaction volume scaling to maintain profitability.
Price multiple is a bit on the high side given Wise will intentionally keep EPS growth low due to reinvestment, but it was the same with Amazon.
I will publish a deep dive into Wise later in 2025. I do own this company at a cost basis of $8.49 USD when it traded at a 6% FCF yield. I am hesitant to add shares at $12 USD.
Euronet (EEFT): The Omnichannel Leader in Remittances
While Wise is a pure digital disruptor, Euronet Worldwide (EEFT) is a legacy company that has successfully transformed into an omnichannel player, offering both cash-based and digital remittances through its Ria Money Transfer division.
From One ATM to a Global Financial Network:
Founded in 1994 with a single ATM in Budapest, Hungary, EEFT has expanded into a diversified global payments company.
EEFT compounded revenue, operating income, and EPS at a 15% CAGR over the past 30 years.
In 2024, the company grew revenue by 9%, operating income by 14%, and EPS by 15% YoY.
A Well-Balanced Business Model:
The Money Transfer segment, including Ria, now accounts for 42% of total revenue and 34% of operating income. EEFT acquired Ria in 2007.
ATMs are still growing fast (LDD) but now contribute a smaller portion of revenue—19% in 2024, down from 25% in 2019.
💡 Strategic Investments in Digital Infrastructure
EEFT is leveraging its expertise across all three segments (EFT, Money Transfer, and ePay) to expand its digital presence:
Ren – A digital payments infrastructure that powers EFT transactions and modernizes payment processing.
Dandelion – A cross-border payment platform that competes with Wise, powering Ria and third-party networks like Walmart2Walmart.
Integration Across Segments – EEFT incorporates ePay (retail payment solutions), EFT (55,000+ ATMs and 1.1 million terminals), and Money Transfer into a seamless global payments network.
📊 Key Financial Metrics:
Forward P/E Ratio: 10.1x (a value play in fintech).
FCF Yield: 13.9%, showing strong cash flow generation.
Analyst consensus 5-year EPS growth estimate of 15% and company guidance of 12-16% EPS growth in 2025.
Insiders also own approximately 10% of shares, which I find a big positive and lots of skin in the game. Michael Brown, though a fast talker and salesy, remains CEO after founding the company in 1994 with $4 million. As of the 2024 proxy statement, Brown owns 5.7% of the company.
🚨 Risks:
Ria competes with fast-growing digital players like Wise and Remitly.
I will publish a deep dive into Euronet later in 2025. I do own this company and am adding shares here in the $100 area.
Final Take: Two Winners in Cross-Border Payments
✔ Wise (WIZEY): Best pure-play digital disruptor, low-cost model, and high customer retention.
✔ Euronet (EEFT): Hybrid omnichannel leader, trading at 10x forward P/E with strong cash flow and 30-year compounded revenue growth of 15% CAGR.
⚠ Intermex (IMXI): Undervalued but must return to growth before it becomes investable. The stock now trades at a 6.1x forward PE (and 10% FCF yield) but it has an uphill battle competing against better positioned competitors having delayed its focus on digital.
⚠ Remitly (RELY): High-growth but high-risk, with marketing-heavy expansion, shareholder dilution concerns and a less sticky platform.
Are You Investing in the Future of Remittances?
Which of these companies do you think will dominate the next decade of cross-border payments? Reply to this email or leave a comment with your thoughts!
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Disclosure: This information is provided for informational purposes only and should not be considered a solicitation or recommendation to buy or sell any securities. The author or entity providing this information may hold positions in the securities discussed. This is not investment advice.
I am long wise and extensive user of Revolut and wise to.
Great article! My business has recently been exploring International Payment Gateways, so this is fun to read.