Paysafe Continues LatAm Expansion
Following a recent deal to buy Peru-based PagoEfectivo, the international payment provider platform Paysafe is furthering its reach in Latin America by acquiring SafetyPay. SafetyPay is active in 11 Latin American countries, making it a powerful asset in the region for its new owner.
Online payments provider Paysafe expands again in Latin America with SafetyPay deal. ©Martin Sanchez/Unsplash
A Closer Look at the Deal
Paysafe announced that it will acquire SafetyPay for an astonishing $441 million, in what will be an “all-cash” transaction. SafetyPay has gained its reputation in Latin America by offering e-commerce solutions, including open banking and “e-cash,” across a wide expanse of territory.
Philip McHugh, CEO of Paysafe, shared more insights about why the company has made this recent deal and what the positive outlook is for its work in Latin America, saying:
“We are very excited to welcome SafetyPay into the Paysafe family. The team has successfully built a market-leading payment platform that has become the de facto open banking solution for Latin America. 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.”
SafetyPay, formed in 2007, is now the largest network of banks and cash points in Latin America, with more than 380 bank partners and 180,000 collection points in its family. In Latin America alone, it works in: Brazil, Chile, Colombia, Ecuador, Costa Rica, Mexico, El Salvador, Panama, Peru and Guatemala. It is also active in Spain.
SafetyPay is the next in Paysafe’s Latin American roster
This additional reach in Latin America will mean Paysafe offers its services to more than 60 countries. Clearly, the region is promising in terms of growth: Paysafe made a similar deal earlier this month for Peru’s PagoEfectivo, an alternative payment platform that also specializes in getting digital banking and online transactions to customers that may have difficulty reaching brick-and-mortar banks.
Bill Foley, chairman of Paysafe’s board of directors elaborated on his enthusiasm for the two deals in a recent press release:
“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.”
What does it mean for iGaming customers?
This news is interesting for iGaming fans because both SafetyPay and PagoEfectivo cater to iGaming operators, in addition to several other industries. The companies offer technology solutions to operators in the eCommerce, digital goods and tourism sectors of Latin America, but online casinos and online sportsbooks benefit in particular from alternative payment platforms.
Part of that is because so much gambling has gone online in the last year and a half, especially in Latin American countries that have been hit hard by the COVID-19 pandemic and forced to close land-based gambling venues. For this, customers need safe, fast, and reliable solutions.
Despite these challenges, the casino industry and sports betting have continued to grow in Latin America. Swedish operator Betsson cited it as a key growth area in its recent, record-breaking Q2 profit report.
