Remitly Is Disrupting Cross-Border Payments. Is the Stock a Long-Term Winner?

What previously required multi-step communications, relatively expensive infrastructure, and time can now be efficiently accomplished by the savvy use of mobile technology.

The transition in payment methods creates an opportunity for the right service provider to win market share.

Remitly’s recent fiscal performance is just a sampling of the strong growth it’s apt to achieve going forward.

If you've ever wired money overseas, you know it's not nearly as easy as using fintech platforms like Zelle or PayPal 's (NASDAQ: PYPL) Venmo within the U.S. Indeed, moving money beyond the United States' border can be surprisingly complicated and time-consuming; these transactions are highly regulated.

Nevertheless, the need is there, with some estimates putting the outbound (from the U.S.) amount alone at around $200 billion per year.

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Launched in 2012, the company got off to a seemingly slow start as an international remittance middleman between the United States and other parts of the world. Chalk it up to the newness of the premise, mostly. At that point, bank wires and platforms like Western Union (NYSE: WU) were the established option, despite steep fees and slow turnaround times. This market wasn't quite ready for a mobile app then, and, to be fair, Remitly's earliest app iteration wasn't nearly as capable as it is today. Now, its platform can send money to and from over 175 countries.

And it's increasingly doing just that at an accelerating growth pace.