EML looks set to thrive as economies reopen

EML Payments (ASX:EML) is an exciting Fintech that delivers innovative payment processing technologies to organisations operating within many industries and countries. The business has weathered the COVID-19 lockdown much better than feared, and is now ideally placed to benefit as global economies reopen and the structural migration trend towards digital payments accelerates.

Historically focused on gift card solutions for shopping malls, EML is now strategically repositioning itself as the preferred technology enabler for disruptive Fintech clients targeting large and lazy sectors like traditional banking, insurance and real estate.

A recent trading update encouragingly confirmed that EML remained cashflow positive during the COVID-19 lockdown period, a much better outcome than the market had feared, and signs of a recovery in May suggest we have potentially seen the low point for the business. Additionally, the reloadable segment proved resilient against the challenging backdrop, continuing to deliver solid organic growth, launching new programs and signing up new clients.

EML now represents a levered play on global economies reopening and the ongoing structural migration towards digital payments, a trend which should accelerate on the back of the pandemic. We also see the company as uniquely placed to cross-sell various Fintech client services embedded into the technology platform, further enhancing the value proposition and driving incremental profit streams.

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Source: EML looks set to thrive as economies reopen – Dominic Rose | Livewire