Jingshu Zhang

Euronet is a top-two payment position. It has a $2.5B market cap, $400M free cash flow this year excluding stock-based comp, and trades around 6x. Competitors cannot easily obtain licenses in 200 countries for cross-border money transfer; even Remitly uses Euronet's Dandelion infrastructure. Regulatory, compliance, and network barriers make it durable and cheap.

Fiserv is mispriced as a melting ice cube. New CEO Mike Lyons and COO Takis Georgakopoulos, who built JPMorgan's payments division, are executing a strategic reset after prior management under Frank Bisignano cut service too deeply and obscured Argentina inflation and one-time items. The reset involves fixing client service, hiring top JPMorgan/Stripe talent, investing in the business, pausing buybacks to deleverage below 3x, protecting investment grade, and launching FIUSD stablecoin with StoneCastle. Trading at roughly 6-7x adjusted EPS with $4B+ FCF and potential low-double-digit EPS growth, it could be worth 12x or more.

The market is wrongly punishing the entire payments sector due to fears that AI and stablecoins will disrupt payments. Payment companies have durable moats: AML/KYC compliance and licensing barriers, proprietary data not available to LLMs, two-sided network effects, and large distribution/sales channels including banks and ISOs. AI-native entrants cannot easily replace mission-critical, regulated, high-uptime payment infrastructure or the local sales/service merchants need. He names IPAY as the payment ETF down 17% and sees Fiserv and Euronet as top payment positions.