Remittance Giants Intermex and Euronet Thrive Despite Economic Headwinds
Remittance providers are innovating to offer faster, more accessible transfers, with some leveraging blockchain technology. Meanwhile, leading players like Intermex and Euronet have seen growth, despite macroeconomic challenges and slowing consumer energy revenues.
Intermex's revenue surged, driven by an 8.8% increase in active agents and an 11.4% rise in active consumers, with a significant 16% increase in money transfer transactions. Euronet's money transfer segment grew by 3%, boosted by double-digit transaction growth in US and international-initiated transfers. However, leading remittance players experienced slowing growth in consumer money revenues in Q3 2022, partly due to macroeconomic headwinds such as the Russia/Ukraine war and currency fluctuations.
Western Union's new digital consumer acquisition model in the US showed promise, while MoneyGram's total growth was 1%, with a notable 13% increase in online revenue and improvements in cross-border online transactions. Remitly, however, faces challenges in converting consumer loyalty to profitability, despite a 49% increase in active quarterly consumers to 3.8 million. Western Union also saw a 12% decline in digital money transfer revenues and a 20% decrease in transactions.
Remittance providers are adapting to maintain growth, with Intermex and Euronet showing positive results. However, the industry faces challenges, including slowing consumer revenues and macroeconomic pressures. Digital innovation, such as Western Union's new consumer acquisition model, and improvements in online transactions, as seen with MoneyGram, are key to navigating these challenges.
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