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London fintech Paysafe to acquire SafetyPay in a $440M deal

Paysafe CEO

A leading specialised payments platform from London, Paysafe, has announced that it will acquire a US-based e-commerce payments platform, SafetyPay for $441 million (nearly £320 million) in an all-cash transaction.

Paysafe enables businesses and consumers to connect and transact seamlessly through industry-leading capabilities in payment processing, digital wallets, eCash and online banking solutions. For now, it offers over 70 payment types in over 40 currencies around the world.

Founded in 2007, SafetyPay’s mission is to enable millions of consumers to use alternative payment methods (APMs) – bank transfer and eCash solutions to make online purchases. It operates via an unparalleled network of banks with over 90 per cent bank coverage and over 180,000 cash collection points. It serves nearly 300 merchants primarily in the travel, entertainment, and digital goods industries.

Why SafetyPay?

With this acquisition, Paysafe will have a leading presence in the fast-growing Latin American e-commerce market, where merchants and consumers are showing an increasing appetite to use open banking and eCash solutions to transact online. With SafetyPay having established relationships with more banks in Latin America than any other payments provider, Paysafe will be uniquely positioned to capture share of the nascent open banking market by integrating further Paysafe services and solutions into the region’s payments ecosystem including its digital wallet and gateway capabilities.

Besides strengthening its strategic foothold in Latin America, this follows Paysafe’s recent acquisition of Peruvian payments platform, PagoEfectivo. Together the two acquisitions are to set Paysafe as the leading open banking and eCash solutions provider in Latin America, one of the world’s fastest-growing online markets.

As a result of the acquisition, the SafetyPay team will transition into Paysafe’s expanding eCash and online banking solutions’ team headed by Paysafe eCash CEO, Udo Mueller. At that time, SafetyPay’s CEO, Gustavo Ruiz Moya, will become CEO, eCash for Latin America and Global Head of Open Banking, reporting into Mueller.

Furthermore, the enlarged Paysafe eCash business will be able to offer eCash and open banking solutions in over 60 countries with over one million distribution points.

“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 LATAM and beyond. Furthermore, 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,” commented Philip McHugh, CEO of Paysafe.

“We are really pleased to see SafetyPay and PagoEfectivo become part of Paysafe and expand our payment solutions across card payment processing, digital wallets, eCash and online banking payments with a strong foothold in high growth Latin American markets. We see exciting synergies in key industry verticals like iGaming where we want to win. From the start, we have had a plan to grow in areas where we can achieve scale through operational efficiency. It is great to see the team execute and create more opportunities for growth,” commented Bill Foley, Chairman of Paysafe’s Board of Directors.