Yahoo Finance

Euronet Worldwide, Inc. EEFT inked a deal with Swedbank to take over the bank’s ATM assets and deliver ATM outsourcing services across the three Baltic countries, Lithuania, Estonia and Latvia. The Swedbank ATM network comprises 1,141 machines, of which 373 are in Estonia, 362 in Latvia and 406 in Lithuania, offering both cash withdrawal and cash deposit/recycling services.

As part of the agreement, Euronet will acquire in-branch and off-branch ATM operations of the bank in the three Baltic nations. The transition will involve a smooth migration to Euronet’s advanced Ren payments processing platform, seamlessly integrating with Swedbank’s existing systems. The migration process is scheduled to begin in the fall of 2025.

This partnership will streamline Swedbank’s ATM operations, delivering more sustainable and cost-effective services for the bank’s customers along with a decreased level of operational expenses and capital expenditures for the bank. Customers will benefit from a personalized user experience, familiar interfaces, transaction options and design for uninterrupted business operations.

Along with maintaining the current number of ATMs, the acquired network will be incorporated into Euronet’s independent ATM network across the three Baltic countries. This integration will provide customers with additional service points and features while adhering to evolving regulatory standards.

The latest agreement with Swedbank is part of Euronet’s ongoing global ATM expansion efforts, which include acquisitions of ATM assets and offering ATM network participation services to various banks. In May 2024, EEFT acquired Malaysian Electronic Payment System ATM terminals in a bid to expand its reach in the Malaysian market.

Benefits of the Recent Move to Euronet

The latest initiative reflects Euronet’s efforts to strengthen its presence in Europe and underscores the extensive experience its EFT Processing segment (of which Ren is a part) holds in ATM asset acquisitions and outsourcing services.

The deal is anticipated to broaden the reach of Euronet's Ren platform, owing to a widely spread ATM network and customer base of Swedbank in the Baltic region. The increased adoption of the EEFT platform is likely to boost revenues for the EFT Processing segment, which contributed approximately 30% to Euronet's total revenues in the first nine months of 2024.

Ren was designed to thrive in the dynamic digital payments environment, supporting real-time settlements and innovative payment methods such as QR codes, PINs and biometric authentication. It primarily caters to financial institutions, central banks and fintech companies.