Remitly Global (RELY 8.54%) was among the losers in the fintech sector today as stocks fell broadly in response to a dystopian blog post offering a hypothetical scenario of how AI would disrupt a number of sectors, including financial payments.
The panic surrounding that thesis outweighed a bullish analyst note on Remitly that included a price target hike, and the stock finished the day down 5%.
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Is payments at risk?
The hypothetical scenario from Citrini Research suggested that the payments sector would be disrupted as AI agents turn to stablecoins to eliminate the interchange fees charged by credit card companies, and facilitators like Remitly, which operates as a platform for international remittances.
While it's possible that stablecoins will replace credit cards, platforms like Remitly operate on trust, and its customers may be reluctant to use a stablecoin on their own for remittances, even if that happens through a familiar app.
Separately, Cantor Fitzgerald raised its price target from $17 to $20 on Remitly and reiterated an overweight rating.
Cantor noted Remitly's strong fourth-quarter results and outlook for 2026, and said that while former CEO Matt Oppenheimer surprised investors by stepping down as CEO, he will remain involved with the business as chairman of the board.
NASDAQ: RELY
Key Data Points
What's next for Remitly
Remitly has struggled on the stock market despite reporting strong growth and improving profitability.
There are no signs that it's being disrupted by AI thus far, and it has begun experimenting with stablecoins itself, protecting itself from potential disruption there. Because of the challenges in cross-border payments and remittances, Remitly would seem to be more insulated from AI disruption than many of its fintech peers.
The stock looks undervalued if it can maintain its recent momentum.
