The acquisition is anticipated to enable Paysafe to capture share of the nascent open banking market in Latin America
UK-based payments firm Paysafe has signed an agreement to acquire the e-commerce payment platform SafetyPay for $441m in an all-cash transaction.
Founded in 2007, SafetyPay provides a payments platform to enable e-commerce transactions through open banking and eCash solutions.
With a presence in 11 Latin American countries, the company operates through a network of banks and more than 180,000 cash collection points.
Currently, SafetyPay serves nearly 300 merchants primarily in the travel, entertainment, and digital goods industries.
The acquisition is expected to strengthen Paysafe’s foothold in Latin America, following its recent announcement to buy Peruvian payments platform, PagoEfectivo.
The deals are expected to enable Paysafe to become one of the major open banking and eCash solutions providers in Latin America.
Paysafe’s board of directors chairman Bill Foley said: “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. From the start, we have had a plan to grow in areas where we can achieve scale through operational efficiency. It is great to see the team execute and create more opportunities for growth.”
The acquisition is anticipated to enable Paysafe to capture share of the nascent open banking market, with SafetyPay’s established relationships with banks in Latin America.
The deal allows Paysafe to integrate its services and solutions into the region’s payments ecosystem including its digital wallet and gateway capabilities.
The SafetyPay acquisition is expected to be completed in the fourth quarter this year.
Upon completion of the transaction, the SafetyPay team will transition into Paysafe’s eCash and online banking solutions’ team.
With nearly 3,400 employees located in more than 12 global locations, Paysafe connects businesses and consumers across 70 payment types in over 40 currencies.