UK-based payments platform Paysafe has signed a definitive agreement to acquire 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.
The deal will see SafetyPay staff, including chief executive Gustavo Ruiz Moya, join the Paysafe team. The sale is expected to be completed by the end of Q4 2021, subject to closing conditions being met. 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.
“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,” commented Bill Foley, Chairman of Paysafe’s Board of Directors.
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.