Payment provider Paysafe takes over SafetyPay – eCommerce Magazin

The payment provider Paysafe has now announced the acquisition of SafetyPay for a purchase price of 441 million US dollars. SafetyPay is a provider of a payment platform in South America that enables e-commerce transactions with various open banking and eCash solutions. SafetyPay is mainly available in South America. With the acquisition, Paysafe aims to strengthen its strategic presence in South America. This is directly related to the recently announced takeover of the PagoEfectivo payment platform in Peru.

The two acquisitions will make Paysafe one of the leading payment providers for open banking and eCash solutions in South America. The region is one of the fastest growing online markets in the world. The goal of Paysafe is to connect companies with their customers in order to enable seamless payment processes. Paysafe has international, industry-leading expertise in payment processing, digital wallets and online cash solutions, and offers over 70 payment options in over 40 currencies worldwide.

Payment provider offers alternative payment methods

SafetyPay was founded in 2007 as an e-commerce payment platform to enable millions of consumers to use alternative payment methods (APMs), particularly bank transfers and eCash solutions, for online purchases. Today the company is represented in eleven countries in South America. In addition, SafetyPay has an additional network of over 380 bank partnerships and more than 20,000 acceptance points in seven European countries.

SafetyPay is a private company backed by venture capitalists such as International Finance Corporation, Armilar Venture Partners and Escort Investments. With its banking network, SafetyPay achieves bank coverage of over 90 percent and over 180,000 cash collection points. In addition, the Anbiert works with almost 300 retailers, mainly in the areas of travel, entertainment and the digital industry.

Paysafe expands position in the South American e-commerce market

Upon completion of the transaction, Paysafe will have a strong presence in the rapidly growing South American e-commerce market. Retailers and consumers there are increasingly using open banking and eCash solutions for online transactions. SafetyPay also has relationships with more banks in South America than any other payment provider. Paysafe is therefore in an ideal position to expand its share of the emerging open banking market by integrating additional Paysafe services and solutions into the local payments ecosystem, including its digital wallets and gateway functions.

Upon completion of the transaction, the SafetyPay team will join Paysafe’s growing eCash and online banking team, led by Udo Müller, CEO of Paysafe eCash. Gustavo Ruiz Moya, previously CEO of SafetyPay, becomes CEO of eCash for South America and Global Head of Open Banking and reports to Udo Müller. Based on its growing eCash business, Paysafe can offer eCash and open banking solutions in the future. In over 60 countries with more than one million sales outlets.

SafetyPay has built a market-leading payment platform

Payment provider Paysafe
McHugh is the CEO of Paysafe. (Image: Paysafe

“We are very pleased to welcome SafetyPay to the Paysafe family. The team has successfully built a market-leading payment platform that has become the de facto open banking solution for South America. We look forward to working with Gustavo Ruiz Moya and his team to continue developing new eCash and online banking solutions in South America and other countries in the future, ”said Philip McHugh, CEO of Paysafe, about the takeover.

“The offer and the open banking network of SafetyPay and PagoEfectivo will be combined with our existing solutions in the areas of processing, digital wallets and eCash and our extensive expertise in areas such as iGaming, travel and digital services. This offers the best conditions for Paysafe to become the market leader in the region. Dealers thus have extensive, unique and powerful opportunities for their business. ”

Payment provider expands in the high-growth South American market

Bill Foley, CEO of Paysafe, adds: “We are very pleased that SafetyPay and PagoEfectivo are becoming part of Paysafe. Our payment solutions in the areas of card payment processing, digital wallets, eCash and online banking payments will therefore have an even larger share in the high-growth South American market. This will result in promising synergies in key industries that are relevant to us, such as iGaming. It is our long-term plan to grow in areas in which we can also achieve decisive shares through such synergies. It is great how the team is implementing this plan and creating further growth opportunities. ”

The SafetyPay transaction is expected to close in the fourth quarter of 2021. The banks of Paysafe have made funding commitments and the payment provider intends to refinance these bridging facilities with new debt at the same time the takeover is completed. RBC Capital Markets, LLC served as exclusive financial advisor and Greenberg Traurig and LLP served as legal advisor to Paysafe on the acquisition. PJT Partners acted as exclusive financial advisor and Quarles & Brady acted as legal advisor to SafetyPay.