WEX Says Corporate Payments Ecosystem Is Calibrated for the Long Term

How businesses move money across key B2B sectors like fuel, travel and healthcare is quietly reshaping the background operational layer of many modern enterprises.

In times of uncertainty and macro dynamism, that can be both a blessing and a curse.

WEX, the Portland, Maine-based global commerce platform, emphasized as much on its Q1 2025 earnings call Thursday (May 1). The financial technology and services company revealed a nuanced performance underscored by deliberate capital allocation, segment-specific momentum and commitments to technology and operational scale.

“Despite macroeconomic pressures, WEX’s strong financial position and diversified portfolio provide a meaningful buffer,” said the company’s Chair, CEO and President Melissa Smith. “This positions us well to navigate ongoing uncertainty.”

WEX operates three core segments: Mobility, Corporate Payments and Benefits. Each are sensitive to macroeconomic factors, and each reacted differently to market conditions, underscoring the value of a multifaceted business model.

Mobility, which accounts for the largest share of the company’s revenue, saw a modest decline. Total segment revenue dipped 2% year-over-year to $333.8 million. Payment processing revenue within the segment fell by $14.3 million (8%) due to lower fuel volumes and pricing spreads. However, finance fee revenue increased 7% to $75.2 million, partially offsetting other declines.

The Corporate Payments segment continued to grapple with the lingering effects of a major online travel agency customer’s shift to a new revenue model. Purchase volume was down 28% year-over-year to $17.3 billion, and revenue was down 15.5% to $103 million, a result of tighter corporate spending and cautious procurement trends. Still, WEX ultimately posted a respectable 39.1% adjusted operating income margin for the segment. The blended net interchange rate increased by seven basis points, also showcasing the company’s ability to extract more value from transactions even amid volume softness.

Conversely, WEX’s Benefits segment provided an uplift. Revenue rose 4% to $199.3 million, buoyed by a 6% increase in SaaS account growth and strong contributions from “other revenue,” which jumped 17%. With adjusted operating margins expanding to 43.6%, the segment continues to offer growth and resilience.

“We are focusing on what we can control,” WEX Chief Financial Officer Jagtar Narula said, “acknowledging incremental headwinds, but staying agile.”

See also: WEX President: There’s an Urgent Need to Modernize Payment Systems for a Digital World

Leaning Into Technological and Financial Scale

WEX’s strategy also reflects evolving customer needs and industry pressures. The company is investing in technology, data analytics and embedded payment solutions that cater to both fleet operators and healthcare providers. It continues to position itself as more than just a fuel card operator, instead branding itself as a “global commerce platform.”

The earnings presentation reiterated WEX’s belief in the power of scale, technology leadership and product innovation. The company increased its sales and marketing investments to amplify the output of its high-performing sales team, while also continuing to pour capital into new product development.

As CEO Smith puts it, WEX’s goal is “to simplify the business of running a business.”

In perhaps the most attention-grabbing move of the quarter, WEX executed an aggressive $790 million share repurchase program, buying back 5.1 million shares and shrinking its share count by 13.1%. This capital return reflects management’s confidence in the business’s intrinsic value amid market uncertainty.

WEX’s CFO Narula framed the buyback as both strategic and opportunistic: “Our repurchase reflects belief in our long-term strategy and strengthens our position in navigating a dynamic environment.”

Read more: How Payments Innovation Underpins All-Weather Businesses and Resilient Supply Chains

WEX is not immune to macroeconomic challenges, but it is showing how financial services firms can remain competitive and agile through digitizing the corporate payments ecosystem.

PYMNTS has previously covered how corporate spend advances, such as virtual cards, can offer buyers greater security and spending controls, and offer suppliers faster payment processing and simplified invoice reconciliation. That’s according to the PYMNTS Intelligence report “Cutting the Checks: Boosting Commercial Payment Speed and Security With Virtual Cards.”

The report also found that 80% of B2B buyers prefer working with vendors that accept virtual cards.

Embedded payments often facilitate the high-value, complex transactions seen in the B2B space, WEX Chief Digital Officer Karen Stroup told PYMNTS in an interview posted in October.