Today’s financial transactions can be completed with a single tap of a card or a smartphone.

Once a transaction is completed, the receipt is sent automatically via email and the business can immediately process the details without opening a cash drawer or taking additional steps.

Millions of Americans rely on cashless payments daily. In 2025, it was estimated that the total transaction value in digital payments would reach over $3 trillion. Additionally, the number of people relying on paperless transactions is expected to reach over 560 million by 2030.

While digital payment seems ubiquitous today and looks simple enough in the eyes of consumers, there’s so much work that goes on behind the scenes to make sure these systems work smoothly.

Businesses, hospitals, and other institutions need a system that can reliably process payments without delays or errors.

And that’s where Flywire (FLYW) comes in.

Flywire is a digital payments platform that specializes in high-value transactions and serves the education, healthcare, and travel sectors.

The company built its reputation on offering seamless cross-border payment solutions that address the unique needs of organizations dealing with international transactions.

By combining payments with industry-specific software tools, the company set itself apart from broader fintech providers. From its early days, Flywire concentrated on making international tuition payments simpler for students and educational institutions.

Over time, the company broadened its scope to include essential software components like collection management, automated billing, and accounts receivable handling that are tailored to the needs of its clients.

At present, Flywire services four major industries. These are education, travel, B2B, and healthcare. It also operates in over 240 countries, serving over 5,000 clients.

The company eliminates the friction associated with the payments processing in these industries by embedding specialized software into mission-critical workflows, paving the way for efficiency gains and higher revenue.

Flywire has leveraged its business model and mission-critical importance to grow its revenue and deliver strong returns.

Last year, the company generated over $620 million in revenue, a substantial increase over the nearly $500 million it posted in the year prior. It also managed to add 750 new clients to its global customer base.

Flywire’s Uniform return on assets (“ROA”) have been remarkably strong as well. It generated a 62% Uniform ROA in 2025 alongside an asset growth of 16%.

That said, it currently trades at a Uniform P/E of 13x, well below the corporate average of 25x. Moreover, the market is forecasting the company’s returns to drop in a few years.

The market expects Flywire’s Uniform ROA to keep expanding to 75% in the next two years. However, returns are expected to fall starting in 2028, dropping significantly to just 35% by 2030, well below the 40%+ returns the company has delivered since 2023.

Market expectations for Flywire appear to be balanced, if not slightly pessimistic. This signals some concerns about competitive pressures and the continued growth—and reliance—of digital payment systems.

That said, Flywire’s global network, sticky offerings, and expanding client base can support and sustain further earnings growth.

Best regards,

Joel Litman & Rob Spivey
Chief Investment Officer &
Director of Research
at Valens Research

Today’s analysis only scratches the surface of what we share with our FA Alpha Members. If you want to gain an in-depth analysis of market trends and uncover undervalued stocks, become an FA Alpha Member today.