Paysafe Explained

Paysafe Limited
Type:Public company
Isin:BMG6964L1072
Industry:Online payments
Founded:[1]
Location:London, UK
Key People:Dan Henson[2]

Bruce Lowthers[3] [4]

Alex Gersh[5] [6]

Products:Electronic money
Digital wallet
Revenue: (Fiscal Year Ended 31 December 2022)[7]
Operating Income: US–$1.872 billion (Fiscal Year Ended 31 December 2022)
Net Income: US$–1.862 billion (Fiscal Year Ended 31 December 2022)
Assets: US$5.957 billion (Fiscal Year Ended 31 December 2022)
Equity: US$0.859 billion (Fiscal Year Ended 31 December 2022)
Website:Paysafe Limited

Paysafe Limited (formerly known as Optimal Payments PLC) is a multinational online payments company.[8] Paysafe offers payment processing, digital wallet and online cash systems to businesses and consumers, with particular experience of serving the global entertainment sectors.[9] The group offers services both under the Paysafe brand and subsidiary brands that have become part of the group through several mergers and acquisitions, most notably Neteller, Skrill, SafetyPay, PagoEfectivo, Paysafecash and paysafecard.

Legally domiciled in Bermuda, Paysafe’s corporate headquarters are in the United Kingdom. Various Paysafe group companies hold a number of licences from different national and state regulators including the U.S. Securities and Exchange Commission, Financial Conduct Authority and the Central Bank of Ireland. The company was listed on the London Stock Exchange and was a constituent of the FTSE 250 Index until it was acquired by a consortium of The Blackstone Group and CVC Capital Partners in December 2017. Paysafe then listed on the New York Stock Exchange on March 31, 2021 (ticker PSFE) following a merger with special purpose acquisition company Foley Trasimene Acquisition Corp II.[10] [11]

History

The company was formed from the combination of Neteller PLC, Netbanx Ltd and Optimal Payments Limited. Netbanx was founded in 1996, Optimal Payments in 1997,[12] and Neteller in 1999.[13] In April 2004, Neteller PLC raised about $70 million in its initial public offering (IPO) on the London Stock Exchange.[14]

In November 2005, Neteller PLC acquired Netbanx Ltd.[15] In November 2008, Neteller PLC renamed itself to Neovia Financial PLC.[16] In February 2011, Neovia Financial PLC acquired Optimal Payments of Montreal, Canada.[17] Next month, Neovia Financial PLC changed its name to Optimal Payments PLC.[18] In early 2012, the acquisition was revealed to be a reverse takeover with the purging of a number of the senior management along with the chairman of the board.[19]

In July 2014, Optimal Payment PLC expanded its United States interests by purchasing Meritus Payment Solutions, a California based payment processing company, and Global Merchant Advisors, Inc. based in the U.S. in a deal worth over $235 Million.[20] In March 2015, Optimal Payments PLC revealed that it would acquire rival Skrill group, including pre-paid voucher provider paysafecard, for a fee of around €1.1 billion.[21] In the same year, Optimal Payments rebranded as Paysafe Group.[22]

The company moved to the main market of the London Stock Exchange in December 2015.[23] On 25 November 2016, Paysafe Group, owner of Neteller and Skrill, restricted the use of the Net+ Prepaid MasterCard to countries within the Single Euro Payments Area (SEPA). This left users in over 100 countries unable to withdraw cash from ATM's, which left no recourse but to make purchases with Neteller/Skrill merchant partners or transfer funds to a bank account.[24]

In August 2017, it was announced that Paysafe would be sold to a consortium of The Blackstone Group and CVC Capital Partners for £2.96 billion,[25] making it the largest private equity backed takeover of a London-listed company since the financial crisis of 2007–2008.[26] The acquisition was approved by the European Commission on 22 November 2017.[27] On 21 December 2017, Paysafe got delisted from the London Stock Exchange.[28]

In April 2019, with the likelihood of the upcoming withdrawal of the United Kingdom (UK) from the European Union (EU), the so-called "Brexit", Paysafe Group announced their plans to prevent any negative effects for their users and merchants. Since Brexit came into effect, the company has transferred its European Economic Area (EEA) business to newly incorporated group companies based in Ireland, namely Paysafe Payment Solutions Limited[29] and Paysafe Prepaid Services Limited.[30] Each company is authorized and regulated as an electronic money institution by the Irish financial services regulator, the Central Bank of Ireland.[31]

In July 2020, it was announced that Paysafe bought payment gateway Openbucks for an undisclosed amount of money. It was announced that the Openbucks team would become part of the parent company's eCash solutions group.[32] [33] [34]

In December 2020, the company announced that it had entered into a definitive agreement to merge with special-purpose acquisition company, Foley Trasimene Acquisition Corp, in a US$9 billion transaction.[35]

In April 2022, Paysafe announced a new partnership with US-based auto finance company Exeter Finance, allowing for eCash payments for US auto loans.[36]

That same month, the company also announced Bruce Lowthers would replace Philip McHugh as CEO and executive director from May 1, 2022.[37]

Products and services

The company provides the following products and services:

Sponsorship

Optimal Payments was the official sponsor of Crystal Palace Football Club for the 2014/15 and 2015/16 seasons, with the front of the team's shirts displaying Neteller's logo.[47]

In February 2018 it was announced that Paysafe would sponsor the No. 19 Dale Coyne Racing Honda, shared by Zachary Claman DeMelo and Pietro Fittipaldi, in the 2018 Verizon IndyCar Series.[48]

Notes and References

  1. Web site: NETBANX Limited: Private Company Information. . 26 March 2015.
  2. Web site: Paysafe appoints daniel henson to refresh boardroom leadership. 2022-03-04. casinobeats.com/. 4 March 2022 .
  3. Web site: 2022-04-08. Paysafe Stock Rises as New CEO Lowthers Is Appointed. 2022-05-09. Barrons. en.
  4. Web site: Bruce F Lowthers profile. 2022-05-09. Bloomberg. en.
  5. Web site: 2022-08-30. Paysafe hires Alex Gersh from Sportradar as its new CFO. 2022-10-03. Gambling Insider. en.
  6. Web site: 2022-08-30. Alex Gersh is Named Paysafe's Newest Chief Financial Officer. Yahoo! Finance. en.
  7. Web site: PaySafe Group Limited 2022 Annual Report . paysafe.com . 19 June 2023. 15 March 2023.
  8. Web site: Optimal Payments PLC (OPAY.L) Company Profile . Reuters . 26 March 2015 .
  9. Web site: 2023-05-16 . Paysafe Reports First Quarter 2023 Results; Reaffirms Full Year Outlook . 2023-06-20 . Yahoo Finance . en-GB.
  10. Web site: Paysafe completes business combination with Foley Trasimene Acquisition Corp II. Yahoo Finance UK. 5 November 2021.
  11. Web site: Paysafe completes merger of Foley Trasimene. ATM Marketplace. 31 March 2021 . 5 November 2021.
  12. Web site: Company Overview of Optimal Payments (Ireland) Limited. Bloomberg L.P.. 27 March 2015.
  13. Web site: Neteller Arrests. Justice.gov. 16 January 2007. 27 March 2015.
  14. Web site: United States of America vs. Stephen Eric Lawrence . 16 January 2007 . Steptoe.com . Steptoe & Johnson LLP . 27 March 2015.
  15. Web site: 1 November 2005. Neteller acquires Netbanx for £12.36 million cash. Finextra. 27 March 2015.
  16. Web site: 17 November 2008. Neteller changes name to Neovia Financial. Finextra. 27 March 2015.
  17. 2 February 2011 . Neovia Financial PLC - NEOVIA completes acquisition of Optimal Payments . https://web.archive.org/web/20150402115800/http://www.reuters.com/article/2011/02/02/idUS80895+02-Feb-2011+RNS20110202 . dead . 2 April 2015 . Reuters . 27 March 2015.
  18. 4 March 2011 . Neovia Financial PLC - Confirmation of name change . https://archive.today/20141208125028/http://in.reuters.com/article/2011/03/04/idUS59392+04-Mar-2011+RNS20110304 . dead . 8 December 2014 . Reuters . 27 March 2015.
  19. Book: Reynolds, Bill . 1 October 2014 . John Lefebvre, Neteller and the Revolution in Online Gambling . . 377 . 978-1770905726 .
  20. 2 July 2014 . Optimal Payments to acquire California based Meritus Payment Solutions to accelerate expansion in U.S. payments market . London, Montreal, New York . . . 27 March 2015.
  21. Reuters. 23 March 2015. Optimal Payments to buy e-wallet rival for $1.2 billion . 27 March 2015.
  22. Web site: Optimal Payments rebrands as Paysafe . . 10 November 2015 . thepaypers.com . 21 April 2019.
  23. Web site: Paysafe moves to London Stock Exchange's Main Market today. Leap Rate. 23 December 2016. 3 March 2016.
  24. News: Neteller and Skrill to pull prepaid Mastercard from 100 countries. latestcasinobonuses.com. 2016-11-27.
  25. News: Paysafe is about to be sold for almost 3 billion pounds - Slotsday. 2017-08-05. Slotsday. 2017-08-05. en-US.
  26. Web site: Hogan Lovells results for calendar year 2017 . . 23 February 2018 . hoganlovells.com . 28 August 2018.
  27. News: 22 November 2017 . Mergers: Commission clears acquisition of Paysafe by CVC and Blackstone . European Commission . Brussels . 26 January 2018.
  28. Web site: Official List - Cancellation - Paysafe Group Plc . . 21 December 2017 . . 26 January 2018.
  29. Web site: Central Bank of Ireland Financial Service Provider Profile for Paysafe Payment Solutions Limited. 2021-11-05.
  30. Web site: Central Bank of Ireland Financial Service Provider Profile for Paysafe Prepaid Services Limited. 2021-11-05.
  31. Web site: eWallet-Optimizer • Paysafe Brexit Plans. 2019-04-02. eWallet-Optimizer. en-US. 2019-04-02.
  32. Web site: Paysafe Group acquires Openbucks . www.mobilepaymentstoday.com . en . 28 July 2020.
  33. Web site: Paysafe To Buy Openbucks and other Digital Transactions. Digital Transactions.
  34. Web site: Paysafe card added as a payment option in Microsoft store. 23 December 2020 . Finance Magnates.
  35. Web site: Paysafe Is Near a $9 Billion Deal to Go Public. 2020-12-07. Bloomberg. en-US. 2020-12-14.
  36. 28 April 2022. Paysafe Enables eCash Payments for US Auto Loans With Exeter Finance. Businesswire. 28 April 2022.
  37. 7 April 2022. Paysafe Announces New CEO. Businesswire. 9 May 2022.
  38. Web site: Accept NETELLER in your Ecommerce Shop. About Payments. 28 March 2015.
  39. Web site: Net+ Prepaid Card Review . Prepaid365 . November 2010 . 28 March 2015.
  40. Web site: Skrill Holdings Limited: Private Company Information. . 26 March 2015.
  41. Web site: Paysafecard. Mollie. 31 December 2017.
  42. Web site: Paysafecard launches Paysafecash. 4 June 2018 . Finextra. 5 November 2021.
  43. Web site: 2022-01-31 . Paysafe closes SafetyPay acquisition . 2023-05-23 . Finextra Research . en.
  44. Web site: Paysafe finalises PagoEfectivo acquisition . 2023-05-23 . thepaypers.com . en.
  45. Web site: O'Boyle . Daniel . 2021-11-01 . Paysafe completes acquisition of Germany's Viafintech . 2023-05-23 . iGB . en-US.
  46. Web site: About us. IncomeAccess. 31 December 2017.
  47. Web site: Optimal Payments Becomes Official Shirt Sponsor. Crystal Palace F.C. Official Website. 7 July 2014. 31 March 2015.
  48. Web site: De Melo confirmed at Coyne with Paysafe sponsorship . Malsher . David . Motorsport.com . 2018-02-07 . 2018-02-18 .

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