Corpay Vehicle Payments Business Helps Drive Profit
The corporate and vehicle payments business has been very good to Corpay.
The business payments firm’s most recent quarterly earnings, reported Thursday (Nov. 7), showed a 6% increase in adjusted profit, driven by growth in those segments.
“Business fundamentals were quite good with same store sales and retention improving and sales remaining strong,” CEO Ron Clarke said in a news release.
Management said robust corporate spending, driven by anticipation of an economic soft landing, helped Corpay offset the effects of lower fuel prices versus last year.
Corpay’s vehicle payments segment lets governments and businesses track and manage fleet fuel payments. The company’s largest unit in terms of revenue, it took in $506.8 million during the quarter, up 1% from last year. Revenue for the corporate payments segment, which helps companies automate and manage vendor payments, jumped 25% to $321.9 million.
“We’re confident that our revenue growth will accelerate in the fourth quarter, which positions us well heading into 2025,” Clarke added.
Tom Panther, Corpay’s finance chief, added that the company closed on its acquisition of Paymerang on July 1, and plans to finalize its purchase of GPS Capital Markets — first announced in June — in the coming months.
“For the fourth quarter, we expect revenue growth acceleration across each of our segments and the realization of synergies from the Paymerang acquisition,” added Panther, noting that the company is projecting 13% revenue growth and 21% earnings growth at the midpoint for the fourth quarter.
In other news from the world of business-to-business (B2B) payments, PYMNTS recently concluded its monthlong event “B2B Payments: Outlook 2030,” which showed that the transformation of B2B payments is being driven by four themes: the digitization of B2B payments, cash flow and treasury enablement, automation for optimization and rising use of emerging technologies and new payments innovations.
In interviews for the series, payments industry experts said that — enticed by the promise of improved efficiency and cost savings — companies are adopting automated payment gateways, cash flow management solutions and an array of emerging technologies.
“This emerging reality doesn’t mean that many companies aren’t still struggling with inefficiencies of manual processes that can lead to delayed payments, high error rates and increased operational costs, it just means that, more and more, they don’t have to be,” PYMNTS wrote last week.
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