In an effort to benefit retailers, epay, a Division of Euronet Worldwide, Inc. (EEFT) has entered into a partnership with Europe's WorldPay. Operating in over 40 countries, WorldPay a provider of merchant accounts offers payment gateways for all sizes of companies, fraud management, alternative payment methods and foreign exchange.
The motive of the partnership is to provide an opportunity to retailers to utilize epay's new terminal with Streamline Technology for receiving payments made through credit and debit cards. Thus epay retailers can increase the card usage of the customers who prefer to pay through cards instead of cash besides drawing attractive commission rates from existing products. Customers benefit from quick and simple transactions ensured by the new technology. By making use of devices that are convenient to use, the new VX520 terminal with in-built card processing technology is offering a number of card payment options in addition to its current payment processing for all major debit and credit cards like MasterCard (MA) and Visa V). The terminal utilizes broadband connectivity.
The aim is to accelerate transaction speed to as much as two seconds per transaction. This reduced transaction timing will give scope to the independent stores to compete with big names in the retail industry and cope up with bulk transactions during peak times.
There has been a surge recently in card payments. As a result, small and medium-sized businesses where cash was the only mode of payment have been forced to come up with other payment systems. This, however, has proved to be a boon to these businesses as it has increased the number of customers as well as overall sales.
According to a survey, adults in UK carry up to three cards each on an average while 89% of the population carries minimum of one debit or credit card. The Dunn & Bradstreet study conducted in September 2012 suggests that when customers make purchases using cards they tend to purchase 12-18% more than they do with cash. Through this partnership, epay will enhance this shopping trend by offering smooth and safe payment options.
Euronet engages in a number of partnerships and acquisitions to strengthen and expand its operations. The company most recently announced the purchase of Australia-based Pure Commerce with a view to expand its market as well as strengthen its Asia Pacific operations.
Moneygram International New (MGI), which closely competes with Euronet, also entered into a partnership recently with WorldPay to spread its direct-to-account money transfer service in around 50 countries worldwide.
Euronet currently holds a Zacks Rank #1 (Strong Buy), while Moneygram carries a Zacks Rank # 3 (Hold).