Edenred (XPAR:EDEN, Financial) (France) is a diversified digital services and payments platform that operates via three business segments: employee benefits, fleet & mobility, and complementary. We appreciate that the company is a technology leader that built and operates a two-sided network of corporate customers and merchant partners in specialized verticals. Within these verticals, users pay for goods/services with payment cards and/or digital wallets proprietary to Edenred that run on either the company’s closed-loop or filtered loop rails, providing a highly defensive business model. Moreover, we find that Edenred is well positioned to capture market share gains as its technology advantage and digital capabilities enable down-market penetration of small- and medium-sized enterprises that monetize at higher rates.
From David Herro (Trades, Portfolio)'s Oakmark International Fund first-quarter 2022 commentary.