Digital and Dandelion drive Euronet growth in Q1 2025
Euronet’s money transfer segment (containing Ria and Xe) grew revenue 9% YoY to $417.7m in Q1 2025, contributing to Euronet’s record overall Q1 revenues of $915.5m, up 7%. As the company expands its Dandelion B2B2X platform and integrates with Visa Direct, it aims to tap into more of the consumer money transfers market this year.
Money transfers growth showed in profitability too, with the segment’s adjusted EBITDA rising 15% to $51.3m, driving a margin of 12% (consistent with last year). Euronet said that EBITDA growth for money transfers outpaced its revenue growth due to “gross margin expansion, leverage of scale and effective expense management”.
Euronet’s digital growth and omnichannel approach
Overall, Euronet saw money transfer transactions rise 10% YoY to 44.6 million, prompted by a 31% increase in digital transactions during the quarter and double digit cross-border transaction growth. The company’s push to advance online transactions reflects other moves by incumbent money transfer providers in the space.
Digital payouts grew 29% YoY and now account for 55% of Euronet’s total volumes, with the company saying this stemmed from “market-leading digital distribution channels” and the growth of the Ria app, which has now expanded its presence to New Zealand. However, Euronet continues to maintain the importance of its omnichannel global presence, having grown its number of network locations by 7% to 624,000.
The company said that it continues to achieve revenue per transaction at more than 20 times the market average, while its presence both in bricks and mortar and online is helping it withstand what CEO Michael Brown called a “hyper-competitive” market during the earnings call.
The above factors drove faster growth for Euronet’s money transfers segment in Q1 2025 than EFT processing, which contains the company’s original ATM business and PoS terminals, as well as its epay segment, which covers its prepaid and payment processing solutions.
Overall, money transfers accounted for 46% of Euronet’s overall revenues – the largest share it has held since Q1 2023 – versus 29% for epay and 25% for EFT processing.
Growing Euronet’s network with Visa Direct
Euronet continues to build out Dandelion – its real-time cross-border payments network that Euronet has previously said could capture an industry “nearly 20 times the size of the remittance market”.
Dandelion formed partnerships with a number of new companies in Q1 2025, including Brussels-based remittances specialist Moneytrans and Hong Kong-based cross-border ecommerce provider Skyee. These deals helped drive 33% transaction growth for the platform during the quarter.
Overall, Euronet signed agreements across 20 countries in Q1, and has recently integrated with Visa Direct, allowing its customers to quickly send funds to four billion Visa cards worldwide. This is a massive addition to Euronet’s existing network, which now also comprises 4 billion bank accounts and 3.2 billion digital wallets, as well as 358,000 retail locations.
Though the impact of the Visa Direct partnership hasn’t been reflected in its results yet, Brown said during the call he was “excited” about lower payout costs from Visa Direct compared to physical payout methods, as well as the boost to digital money transfer convenience.
A key question raised during the call was on volatility, specifically in reaction to macroeconomic conditions (and likely in response to recent US tariffs). Though it noted the uptick in FX volatility in April, Euronet said that currency fluctuations had a minimal impact on its business in Q1 and it isn’t expecting a direct impact, due to the fact that three quarters of its revenues are generated outside the US.
Money transfers continue to form a core part of Euronet’s business and as the company scales its Dandelion solution, along with a Visa Direct solution, the segment could become even more of a frontrunner for the company in the future
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