Payment platform Paysafe (PSFE) is positioning itself to be the dominant open banking and eCash solutions provider in Latin America with the purchase of SafetyPay—the leading e-commerce payment platform in that region.
When is the SafetyPay and Paysafe acquisition date?
Paysafe officials announced on Aug. 16 that the company is acquiring SafetyPay for $441 million in an all-cash transaction. The acquisition date is expected in the fourth quarter of 2021. The purchase of SafetyPay will enable Paysafe to strengthen its foothold in Latin America.
“We are very excited to welcome SafetyPay into the Paysafe family. The team has successfully built a market-leading payment platform that has become the de-facto open banking solution for Latin America. We look forward to partnering with Gustavo and the team to continue to build eCash and online banking solutions across Latin America and beyond,” said Philip McHugh, the CEO of Paysafe.
Paysafe purchased PagoEfectivo in early August.
Earlier this month, Paysafe announced that it was purchasing the Peruvian payments platform PagoEfectivo. The acquisition is expected to close at the end of August.
With the acquisition of both SafetyPay and PagoEfectivo, Paysafe will be the leading open banking and eCash solutions provider in Latin America, which is one of the world’s fastest-growing online markets.
“By combining the capabilities and open banking network of both SafetyPay and PagoEfectivo with our existing solutions in processing, digital wallets, and eCash, along with our deep expertise in specialized verticals such as iGaming, travel and digital goods, we can become the true market leader in the region and provide merchants with unique and powerful combinations to grow their business,” McHugh said.
SafetyPay operates in Latin America and Europe.
Founded in 2007, SafetyPay is an e-commerce payment platform that offers bank transfers, eCash solutions, and alternative payment methods (APMs) to make secure online purchases from merchants around the world. The company operates through over 180,000 banks and cash collections points in 11 Latin American countries. The company also has over 380 bank partnerships and more than 20,000 collection points in seven European countries.
Paysafe reported a 13 percent revenue increase for Q2 2021.
London-based Paysafe Limited is a specialized multinational payments platform that connects businesses and consumers across 70 payment types in over 40 different currencies from across the globe. The company processes $100 billion worth of transactions each year.
The company owns the brands IncomeAccess, Paysafecard, Paysafe:cash, Neteller, Skrill, and Petroleum Card Services (PCS).
Paysafe went public in the U.S. in March through a $9 billion merger with SPAC Foley Trasimene Acquisition Corp. On Aug. 16, Paysafe shares were trading at about $8.72.
In its financial results for the second quarter of 2021, Paysafe reported over $384 million in revenue, which is a 13 percent increase over the same period last year. Its adjusted EBITDA of $118.8 million is an 8 percent increase over the same period in 2020.
The company saw growth across iGaming, digital wallets, and cryptocurrencies.
“In total, we remain confident in our 2021 outlook and the years ahead as we continue to see the combination of our eCommerce gateway, digital wallets, online banking, and eCash solutions as a true differentiator in the market,” McHugh said.