Paysafe, one of the largest payments companies in Europe and globally as well, has announced that it has completed the acquisition of viafintech, which is a German-based fintech company that facilitates digital payments.
There has been some increased competition among the payment service providers over the last couple of years. During the same period, the market has also expanded tremendously due to the pandemic and this has led to huge investments being made into this sector. These investments have also spawned a lot of startups in this space and along with the advent of cryptos as a mainstream form of payments, the choices available to the users now are many. This has placed a lot of price pressure on the existing players in the payments market who have not been used to this demand as well as this level of competition. Now is the time for them all to shape up and that is one of the reasons why Paysafe has been looking to expand via acquisitions.
Udo Müller, CEO of Paysafe’s eCash division, commented: “This is a very exciting acquisition for Paysafe. By combining viafintech’s leading payment solutions with our eCash and alternative payment portfolio, we are very well positioned as an essential payments partner to challenger banks around the world. This comes at a crucial point in time as we experience a consumer shift away from the legacy banking system and more and more challenger banks are entering the market and offering mobile-based solutions for banking and payments.”
vaifintech has been one of the leaders in providing payments infra and its solution is used by a lot of digital banking platforms in Europe to provide a kind of mobile-ATM where users would be able to deposit and withdraw cash from small businesses and stores using just a bar code. This has provided a lot of convenience for the users and the shutdown of various brick and mortar branches of banks has only fuelled the need for such solutions. The acquisition of viafintech would help get Paysafe the much-needed foothold in the region which would help with its inorganic growth and expansion as it looks to add more features and upgrades to its platform so that it can continue in the race.