UK-based payments platform Paysafe has completed the acquisition of SafetyPay, one of Latin America and Europe’s leading digital alternative payment platforms.
For Paysafe, this latest investment is a strategic foothold in Latin America as the firm looks to expand its eCash business in the continent.
Paysafe also highlighted that the recent purchase, which comes shortly after the takeover of Peruvian platform PagoEfectivo, is a result of an increased appetite for alternative payment methods and online banking in Latin America.
SafetyPay, founded in 2007, facilitates consumer and merchant e-commerce transactions, excluding common issues linked to traditional payment methods through a suite of B2C and B2B solutions. SafetyPay offers a secure method of e-payment that allows cash sales to end users who want to pay through their bank account or in cash without a bank account via sales channels, such as e-commerce or call centres.
SafetyPay team now transitions into Paysafe’s eCash
The deal will see SafetyPay staff, including chief executive Gustavo Ruiz Moya, join the Paysafe. 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.
The two companies will continue to operate independently until the deal becomes official. But upon completion of the acquisition, the SafetyPay team will transition into Paysafe’s eCash and online banking solutions’ team. At that time, SafetyPay’s CEO will head Paysafe’s eCash business for Latin America and assume the role of global head of open banking.
Philip McHugh, Paysafe’s CEO, commented: “We’re very excited by what SafetyPay adds to our group as part of our global real-time banking solutions. We believe that together we will find extensive cross-sell opportunities for online merchants who are looking to expand into new markets. We also see huge potential to offer SafetyPay solutions to some of our largest existing customers, particularly those looking for growth in fast-growing Latin America.”
Gustavo Ruiz Moya, SafetyPay’s CEO, added: “Becoming part of the Paysafe Group will help us build on SafetyPay’s leadership to date and accelerate our future growth. It’s also an immense opportunity being able to join forces with PagoEfectivo in Latin America, as well as the wider eCash team, to exploit the many opportunities we see as the nascent open banking ecosystem continues to open up across the continent.”
The SafetyPay deal represents the latest step in Paysafe’s expansion roadmap. The payments giant finalized its SPAC merger with Foley Trasimene in April, allowing it to go public on the New York Stock Exchange.