Remittance Companies

Screening in the search of new stock picks I came accross a firm that provides remittance services (sending of money mainly from US to Latin American), International Money Express ($IMXI). The numbers looked good, the reports ok, … basically through some independent agents or own stores around several US states they offer their services to inmigrants. At the same time, they have already established relationships with banks and other receipt nodes at the offered destinations. Making it possible to transfer, through their own technology the money in only some minutes. A fee is then charged to the sender, from which a part goes to the agent, another to the receipt node, and finally a part to International Money Express. All looked good, but still in my mind resonated the question, why they don’t just user Paypal, a digital cryptocurrency or something similar? It looks quite complicated. In one of the disclosed risks, in one of the reports sent to the SEC, they acknowledge that eventually a digital platform might disrupt this process, but they don’t expect it in the short term. And that is what finally switch on my bulb. Why, if I plan to invest for the long-term will I enter in a company which acknowledges a big disruption, but at least not in the short-term. I’ve realized then, that there are many other companies waiting in the pipeline, and that investing in a company (even if it is very cheap) with this risk in the back, wouldn’t let me sleep well. So I definitely decided to let it go, and discard any of the other ones offering this same services (which also sit in the cheap ones, but that now I understand they are there for a good reason).