Growth in Corpay Acquisitions: Insights from Group President Mark Frey Regarding Q2 2024
In a strategic move to expand its presence in the corporate payments and cross-border payments markets, Corpay has focused on acquisition-led growth, innovative product offerings, and broad geographic coverage.
The acquisition of invoice and payment automation platform Paymerang in July is expected to fuel further growth for Corpay. This move is part of a larger strategy that includes the upcoming acquisition of B2B payment processor GPS.
Corpay's Q2 2024 cross-border sales surged by 25%, with the overall EBITDA margin standing at 53%, marking a 60 bps YoY increase. The Corporate Payments division, now known as Corpay, saw a 17% increase in revenue, accounting for a 30% share of Corpay's total revenue, and delivered $141 million in EBITDA.
One of the key drivers of Corpay's growth in cross-border payments is the Multicurrency Account (MCA) product, which allows clients to manage multiple currencies seamlessly. In its first year, the MCA achieved over $1 billion in deposits and 10,000 active accounts.
Corpay has also partnered with Mastercard, leveraging its global network to reduce friction in international transactions, improve speed, and enhance compliance. This strategic partnership strengthens Corpay's competitive position in cross-border payments.
Acquisitions are not just about revenue growth for Corpay. They also contribute to EBITDA resilience. Despite increased operating expenses from M&A integration and higher transaction volumes, Corpay maintained a strong adjusted EBITDA margin of about 56%, demonstrating disciplined cost management and pricing power.
Looking ahead, Corpay has streamlined its portfolio by divesting non-core vehicle businesses to focus capital and strategic efforts on its core corporate payments and cross-border growth engines.
Corpay's overall revenue for Q2 2024, excluding its Russia business, rose by 7%. The company slightly adjusted its FY 2024 guidance to $3.98bn-4.03bn, with an expectation of low to mid-teens growth, led by Corporate Payments growing more than 20%.
In summary, Corpay's growth strategy in corporate and cross-border payments is driven by acquisition-led growth, expansion of cross-border offerings like the MCA and strategic partnerships (e.g., Mastercard), broad geographic coverage, increasing client spend volume, supported by digital payables platforms, and maintaining strong EBITDA margins through operational discipline amidst integration and scaling. These elements combine to accelerate Corpay's leadership and revenue growth in corporate payments, particularly in the fast-growing cross-border payment sector.
[1] Corpay Press Release, Q2 2024 Earnings Report [2] Corpay Investor Presentation, Q2 2025 Outlook [3] Corpay Blog Post, Strengthening Our Position in Cross-border Payments
- Corpay's growth strategy in the cross-border payment sector is not limited to acquisition-led growth, but also includes the development of innovative products such as the Multi-Currency Account (MCA), strategic partnerships like the one with Mastercard, and maintaining a strong focus on business expansion through digital payables platforms.
- As part of its long-term business strategy, Corpay is looking to invest in acquisition targets such as Paymerang and GPS, with the aim of strengthening its position in the corporate payments market and enhancing EBITDA resilience.
