Paysafe is expanding its presence in the payments space for Latin America by offering its Paysafecash online cash, or eCash, solution as a payment method for customers in Argentina.
For Paysafe, this latest expansion is a strategic foothold in Latin America as the firm looks to expand its eCash business in the continent. It also enables further scale and cross-selling opportunities for the company in this high-growth market.
The development follows Paysafe’s recent acquisition of SafetyPay, one of Latin America and Europe’s leading digital alternative payment platforms. The UK-based payments platform 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.
Chirag Patel, President Digital Wallets at Paysafe, commented on the launch: “We’re excited to be operating again in Argentina, where eCommerce and online financial services are growing rapidly while the population remains underserved in terms of cards. We see great potential here to help our international merchant partners provide the right payments options for their customers and make more transactions.”
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 deal with SafetyPay saw the latter’s staff, including chief executive Gustavo Ruiz Moya, join the Paysafe. 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.
The recent deals represent 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.