Dive Brief:
- Leawood, Kansas-based Euronet Worldwide said it has signed up the British bank HSBC, the eighth-largest bank in the world, as a customer for its new Dandelion cross-border payments service.
- Euronet, which is also the parent company to Ria money transfer service, made the announcement in conjunction with fourth-quarter earnings report on Wednesday in which it posted net income of $67.8 million, compared to a loss in the year-earlier period.
- The company doesn’t expect significant revenue from its new HSBC relationship this year, but the benefit should become more apparent next year, Euronet Chairman and CEO Michael Brown told analysts on a call to discuss earnings.
Dive Insight:
With its Dandelion service launched last year, Euronet aims to offer to banks and businesses what its Ria money transfer service has offered to consumers.
The company has been in conversations with a number of big banks about providing them with the white-label cross-border payments services, Dandelion’s Chief Strategy Officer Cecilia Tamez said in a recent interview.
The Dandelion brand, which Euronet launched in November 2021, enables banks and fintechs to deliver payments for businesses and consumers in 190 countries, via bank channels, mobile wallets and cash transfer venues, often offering payments within minutes. Through its network, Dandelion connects to thousands of banks and offers a half million cash pick-up locations, Tamez said.
Dandelion already provides support for other cross-border payments services including the remittance fintech Remitly and PayPal’s Xoom service, she said.
