eServGlobal(AX:ESV) has been on a long journey to restructure its core business; we believe it is now nearing the end of this process. The cost base has been resized to match the revenue base case and the recent fund-raising has removed funding concerns. Its HomeSend joint venture has expanded its addressable market to serve the cross-border banking payments market, with joint venture partner Mastercard signing up 10 banks to use the service so far. This has the potential to add material revenues and grow the value of the joint venture.
HomeSend – exploiting the banking opportunity
Mastercard has been actively marketing its Mastercard Send Cross-Border service (powered by HomeSend) to many of its banking customers, and so far 10 have signed up. As these banks shift their cross-border payments over to the service, eServGlobal estimates that annual transaction volumes could reach $3-5bn over the next few years, adding incremental revenues to HomeSend’s existing peer-to-peer, remittance-based revenues and accelerating the JV’s path to profitability.
To read the entire report Please click on the pdf File Below: