
Could Buying Remitly Global Stock Today Set You Up for Life?
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The stock market keeps soaring, but Remitly Global (RELY 1. 26%) has failed to join the party. S of the mobile remittance platform have tumbled 33% from highs set earlier...
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cryptocurrency
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July 5, 2025
06:15 AM
The Motley Fool
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The stock market keeps soaring, but Remitly Global (RELY 1. 26%) has failed to join the party
S of the mobile remittance platform have tumbled 33% from highs set earlier this year due to perceived risks over reduced immigration to the U. , potential taxes on remittances, and the rise of stablecoins for international money transfers
There is a lot of negativity over Remitly Global stock right now
I believe these doubts are overblown
Here's why buying Remitly stock could set your portfolio up for life
Stealing in remittances Compared to traditional remittances, Remitly Global is vastly superior for almost any customer looking to send money from one country to another
Remitly has an easy-to-use mobile application and lower fees than traditional players Western Union
It is able to do so because it does not operate any physical money transfer centers, but it still partners with physical receiving locations in foreign countries when that is the preferred option for the person receiving money
Due to this growing competitive advantage, Remitly's send volume is growing at the fastest pace in the industry
Last quarter, send volume was up 41% year over year to $16
And yet, it still holds only a small sr of the global international money transfer market
It is heavily in new ducts such as a WhatsApp integration and tools for microes, while also expanding into new corridors outside of its original key sending from the U
To India, the Philippines, and Mexico
All this has led Remitly's revenue to grow at a phenomenal rate during the past few years
Since 2019, revenue has compounded at a 57% annual rate, growing from $126 million to $1. 36 billion
Image source: Getty Images
Stablecoin competition and taxes It can be confusing to see Remitly growing so rapidly while simultaneously seeing its stock price fall
This is because of two huge narratives that are striking fear into investors
First is all the hype around stablecoins
Stablecoins are cryptocurrencies tied to a fiat currency, typically the U
In theory, it should be cheaper to send money digitally through stablecoins, bypassing traditional systems
There has been plenty of regulation around stablecoins in the U
As industry bulls try to get duct adoption
However, using stablecoins to transfer money runs into an issue, which is converting said stablecoin into a currency your receiver can actually use in real life
At this step, you will still pay the same fee as before, just with an extra step
I have no doubt, either, that Remitly can begin to accept stablecoins as a form of funds once it gets regulatory apval
This is not a huge risk for the
Second, Remitly is facing potential pressure due to immigrant deportations, which could present a small headwind to the
There is also a posed tax on remittances
A changing immigration landscape may hurt Remitly's growth ever so slightly, but this tax is nothing to be worried
It is only 1% and a tax on cash payments only
As it stands, the tax should help Remitly gain a competitive edge over traditional money transfer methods
RELY Revenue (TTM) data by YCharts Will Remitly stock set you up for life
After the sharp price decline, I believe Remitly stock is cheap and a perfect set-up for investors looking to buy and hold over the next 10 years
It has only 2% to 3% of the remittance market, giving it a ton of room to take in a sector that has grown with globalization of work
Today, the company has a market cap of $3
It generated $1. 36 billion in revenue during the past 12 months and it expects to generate more than $1. 5 billion in revenue this year
The has strong unit economics due to its digital-first strategy, with 60% gross fit margins that have ticked higher year after year
These wide margins should convert to 20% or higher bottom-line fit margins at scale, although today the company isn't generating much in fit because of its heavy spending on duct development and marketing
Remitly's $1. 5 billion in revenue at a 20% fit margin equals $300 million in earnings, or a theoretical price-to-earnings ratio (P/E) of just 12
In five or 10 years, Remitly's revenue will be much higher than $1. 5 billion, too, which should drive the stock price higher
Remitly stock looks a multibagger in the making; investors could ly buy and watch the returns roll in during the next decade
Brett Schafer has positions in Remitly Global
The Motley Fool has no position in any of the stocks mentioned
The Motley Fool has a disclosure policy.
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