Onnipro Partners with Euronet to Enhance Card Issuing and Payment Processing in Brazil
On June 19, 2024, Euronet (NASDAQ: EEFT) announced a partnership with Onnipro, a subsidiary of Onnitech Group in Sao Paulo, Brazil. The collaboration involves leveraging Euronet's Ren payments platform to expand Onnipro's card issuing capabilities, enabling support for Visa and Mastercard networks under a multi-year agreement. Serving over 12 million customers, Onnipro aims to transition from issuing closed-loop Elo cards to open-loop programs, enhancing its market position and service offerings. Ren's scalable and flexible platform will streamline Onnipro's operations and accelerate its market growth.
- Onnipro's transition from closed-loop Elo cards to open-loop Visa/Mastercard programs.
- Onnipro serves over 12 million customers, indicating a large user base.
- Ren's scalable and flexible platform supports industry-leading uptime and seamless integration with global payment networks.
- None.
The partnership between Onnipro and Euronet to enhance card issuing and payment processing capabilities marks a significant step in the Brazilian financial technology space. The strategic move to adopt Euronet's Ren platform for open-loop card programs will allow Onnipro to expand its service offerings beyond its current scope. This could result in increased market share and revenue streams. The scalability and flexibility of the Ren platform could simplify integration with global payment networks, which is highly attractive for Onnipro's growth ambitions. Additionally, the shift from a closed-loop to an open-loop system will likely improve transaction volume and customer retention.
From a financial perspective, investors should ponder how this partnership could affect Onnipro's financial health in the short and long term. The initial costs for integration and operational shifts may impact short-term profitability, but the long-term benefits likely outweigh these initial expenses. Enhanced market positioning and technological advancements offer a compelling growth narrative that investors typically look for. However, it's also essential to consider the competitive dynamics of the Brazilian payments industry and how effectively Onnipro can leverage Euronet's technology to outpace rivals.
Onnipro's strategic alignment with Euronet and its Ren platform could be a game-changer in Brazil's payment processing sector. By transitioning from a closed-loop to an open-loop system, Onnipro can cater to a broader range of customer needs, which is important in a rapidly evolving market. The Brazilian market has seen a surge in digital payment adoption and this move positions Onnipro well to capitalize on this trend.
The integration with Visa and Mastercard networks adds a layer of credibility and broadens the potential customer base. The promise of superior transaction processing capabilities and industry-leading uptime is likely to enhance customer satisfaction and loyalty. Additionally, the streamlined card-issuing operations can provide Onnipro with a competitive edge, potentially drawing more customers from competitors who may not offer such flexible and reliable services.
Market dynamics, such as regulatory changes and consumer behavior shifts towards digital payments, support this strategic move. However, the success of this initiative will depend on effective execution and the ability to swiftly integrate and market these new capabilities.
LEAWOOD, Kan., June 19, 2024 (GLOBE NEWSWIRE) -- Euronet (NASDAQ: EEFT), a leading global financial technology solutions and payments provider, today announced the signing of an agreement with Onnipro, a subsidiary of the Onnitech Group, with headquarters in Sao Paulo, Brazil. Onnipro will leverage Euronet's Ren payments platform (Ren) to expand its card issuing capabilities to support open-loop card programs and processing through the Visa and Mastercard networks as part of this multi-year agreement.
Onnipro, the card processor for Brazil's largest employee benefits company with more than 12 million customers, is set to revolutionize its operations with Ren. By meeting the regulatory and network requirements for open-loop card programs, Onnipro can offer expanded benefit card capabilities to existing and new customers. This move will streamline its card-issuing operations and position Onnipro for future growth and innovation.
Ren's global card issuing and processing expertise is central to this partnership. With years of experience and customers worldwide, Ren provides Onnipro with a highly scalable and flexible platform designed for industry-leading uptime, seamless integration with global payment networks and superior transaction processing capabilities. Through Ren, Onnipro will accelerate its time-to-market and set a new standard in its industry.
Key Highlights of the Agreement:
- Strategic Transition: Ren will facilitate the expansion of Onnipro, which today issues Elo, a widely accepted domestic card brand in Brazil, from a closed-loop provider to a robust Visa/Mastercard open-loop issuing processor. This transition will enable Onnipro to offer more versatile and reliable payment options, enhancing its service offerings and competitiveness in the market.
- Enhanced Market Position: Onnipro's collaboration with Euronet is a strategic move, allowing them to leverage Euronet's extensive network and expertise in the payments industry. This partnership not only enhances Onnipro's market position but also technologically and strategically positions it as one of the leading card issuers in Brazil, capable of meeting the growing demands of the Brazilian and global markets.
- Card Network Integration Expertise: Ren provides Onnipro with extensive experience with integration and processing through card networks. Ren will seamlessly convert authorization messages to and from Onnipro and the card platforms in a standard format to streamline processing and enhance its products and services.
“We are excited to partner with Onnipro and bring our Ren platform’s advanced issuing capabilities to its markets,” said Oscar Munoz, Head of Sales for Ren, Americas at Euronet. “We are particularly proud to help Onnipro achieve open-loop status, underscoring our commitment to innovation and excellence in payment processing. We are proud to support Onnipro’s growth and transformation.”
“Euronet’s proven expertise and future-proof technology make it the perfect partner for our strategic objectives in Brazil and is aligned with our international growth plans,” said Eden Mattos, Onnipro's executive. “This partnership will enable us to streamline our time-to-market and provide comprehensive card programs to our customers. Together, we are poised to enhance the payments landscape in Brazil and beyond.”
About Ren
Ren is a modern enterprise payments platform that processes mission-critical transactions and creates innovative experiences. With its cloud-ready microservices architecture, Ren addresses the issuing, acquiring, and instant payment challenges facing financial institutions, fintechs and other businesses in the rapidly changing global payments landscape. Learn more at www.renpayments.com.
About Onnipro
Onnipro, a subsidiary of the Onnitech Group, is one of the leading providers of payment processing solutions in Brazil. In association with Onnibank, Onnipro meets the specific licensing requirements for payment institutions and provides BIN sponsorship and complete program management. Onnipro is the supplier chosen by the country's largest benefits card operator for its multi-benefit card program for employees in Brazil, serving millions of customers.
About Euronet
Starting in Central Europe in 1994 and growing to a global real-time digital and cash payments network with millions of touchpoints today, Euronet now moves money in all the ways consumers and businesses depend upon. This includes money transfers, credit/debit processing, ATMs, point-of-sale services, branded payments, currency exchange and more. With products and services in more than 200 countries and territories provided through its own brand and branded business segments, Euronet and its financial technologies and networks make participation in the global economy easier, faster, and more secure for everyone.
A leading global financial technology solutions and payments provider, Euronet has developed an extensive global payment network that includes 53,029 installed ATMs, approximately 713,000 EFT POS terminals and a growing portfolio of outsourced debit and credit card services which are under management in 67 countries; card software solutions; a prepaid processing network of approximately 808,000 POS terminals at approximately 348,000 retailer locations in 63 countries; and a global money transfer network of approximately 583,000 locations serving 198 countries and territories. Euronet serves clients from its corporate headquarters in Leawood, Kansas, USA, and 67 worldwide offices. For more information, please visit the Company's website at www.euronetworldwide.com.
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