PORTLAND, Maine - WEX (NYSE:WEX), a prominent global commerce platform, has solidified its relationship with Booking.com by renewing a long-term agreement, making it the preferred virtual card provider for the travel giant. This collaboration, effective from April 2024, aims to support Booking.com's vision of simplifying transactions in the travel sector.
The partnership, which dates back to 2013, has WEX processing payments for Booking.com worldwide, addressing the complexities of dealing with multiple currencies, borders, and time zones. This move is expected to enhance the travel experience for Booking.com’s customers and accommodation partners by streamlining payment processes.
Carlos Carriedo, WEX’s Chief Operating Officer, International, expressed pride in the company's work with eight of the top ten online travel agencies globally, including Booking.com. He emphasized WEX's commitment to leveraging its expertise in payments and travel to support Booking.com's business-to-business (B2B) travel payment activities around the clock and across the globe.
Daniel Marovitz, Senior Vice President of Fintech at Booking.com, acknowledged the complexities of creating a seamless travel experience and commended WEX for its global virtual card and cross-currency capabilities. The partnership focuses on reducing payment friction and enhancing value for users.
WEX, with over 40 years of experience in payments, has been a pioneer in virtual payment solutions, establishing one of the first virtual card programs for travel in 2000. The company is known for its leadership in travel and corporate payment solutions. In 2023, WEX's Corporate Payments segment processed about $128 billion in total volume, which contributed approximately $500 million in revenue.
The announcement of this extended agreement is based on a press release statement and is part of WEX's ongoing strategy to simplify the business of running a business, providing personalized solutions embedded within its powerful ecosystem.
Booking.com, part of Booking Holdings Inc. (NASDAQ:BKNG), continues its mission to make world experiences more accessible by investing in technology that reduces travel friction.
InvestingPro Insights
As WEX (NYSE:WEX) reaffirms its strategic alliance with Booking.com, the company's financial metrics provide a glimpse into its market position and future prospects. With a robust market capitalization of $9.78 billion, WEX stands as a significant player in the global commerce platform space. The company's commitment to innovation in payment solutions is mirrored in its financial health, as evidenced by a Price/Earnings (P/E) ratio of 29.79 for the last twelve months as of Q4 2023, suggesting a market recognition of its earnings potential.
Analysts remain optimistic about WEX's growth trajectory, with six analysts having revised their earnings expectations upwards for the upcoming period. This could be a reflection of WEX's strategic initiatives, such as the renewed partnership with Booking.com, which may contribute to future revenue streams. Additionally, WEX's Price/Earnings to Growth (PEG) ratio of 0.99 indicates that the company's earnings growth is in line with its P/E ratio, providing a balanced view of its valuation.
Investors interested in the company's performance can note that WEX is trading at a high Price/Book multiple of 5.37, which could be indicative of the market's confidence in the company's assets and overall business strategy. With a solid gross profit margin of 72.73%, WEX demonstrates its ability to maintain profitability in its operations. An InvestingPro Tip worth noting is that WEX is expected to continue its profitability trend, having been profitable over the last twelve months. Moreover, the company's stock has experienced a significant price uptick of 29.29% over the last six months, reflecting positive investor sentiment.
For those considering adding WEX to their investment portfolio, it's worth exploring the comprehensive suite of InvestingPro Tips available, which offer deeper insights into the company's financial health and market performance. There are 9 additional tips listed in InvestingPro for WEX, providing a more granular analysis for investors. To access these insights, investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enriching their investment strategy with valuable data and expert analysis.
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