Contributed by Manole Capital Management
Our definition of FINTECH is “anything utilizing technology to improve an established process”. With broad acceptance, excellent technology, proprietary datasets, directly integrated into its customers operations, WEX (ticker WEX) perfectly classifies as a FINTECH business. However, unlike other more well-known payment franchises (like Visa, MasterCard, PayPal, etc), WEX is definitely not a household name. Within the FINTECH community, especially in fleet management and B2B payments, WEX is broadly recognized as a dominant leader. We love the fact that you probably have never heard of WEX and the S&P 500 has not yet added this great mid-cap company to it index. Let’s just keep it our little secret, OK?
In our opinion, the payment sector is the quintessential FINTECH business. More and more individuals are migrating from cash and check to card and mobile payments. More companies are shifting their accounting and payment systems from paper checks to automated software tools. WEX perfectly sits at the intersection between the migration from cash to card, as well as on the complex B2B (business-to-business) payment channel. WEX is powered by the belief that complex payment systems can be made simple. We will layout our case for WEX as a dominant FINTECH company, highlight its potential for continued growth and do a deep analysis of its key attributes and strengths.
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