The specialized payments biggie, PaySafe, signed a definitive contract to acquire Latin American eCommerce payment platform, SafetyPay, for $441 million. The acquisition of SafetyPay will help the former to establish a stronger dominance in the region. This will come into fruition after the preceding acquisition of PagoEfectivo, a Peruvian payment service.
Established in 2007 by Barbara Bibas and Manuel Montero, SafetyPay empowers eCommerce exchanges at more than 180,000 cash collection units through open banking and eCash contributions in 11 Latin American nations and Europe. It serves close to 300 dealers in travel, entertainment, and digital goods.
PaySafe offers its clients payment processing, eCash, digital wallets, and online banking services among a plethora of payment types in over 40 currencies. Their fundamental purpose is to connect businesses to consumers and transact impeccably through industry-leading competencies in all their services.
PaySafe acquires SafetyPay
This acquisition will provide the firm a greater scale and presence in the Latin American eCommerce business market, where traders and shoppers are foraging for massive utilization of open banking and e-cash solutions on the internet. Moreover, as SafetyPay is allied to a greater number of banks in Latin America, PaySafe is sure to clasp onto a portion of the promising open banking market by incorporating further PaySafe administrations and provisions – including its electronic wallet and gateway capacities.
In October 2020, SafetyPay collaborated with Latin American eCommerce firm Rappi for cash solutions and instant resolution, permitting online retailers to arrive at more clients by taking different payment techniques.
In June, payments brand Skrill, which is owned by PaySafe, reported an association with the Software-as-a-Service (SaaS) platform Wix that enables oodles of entrepreneurs to acknowledge installments. Wix has more than 200 million clients all around the globe.
When the deal is finalized, the SafetyPay group will turn out to be important for PaySafe’s eCash and online banking solutions team. SafetyPay’s CEO, Gustavo Ruiz Moya, will become the worldwide head of open banking. The merged company will offer services at more than 1 million distribution centers in over 60 countries.
RBC Capital Markets, LLC filled in as a special financial counsel, and Greenberg Traurig, LLP filled in as a legal counsel to PaySafe. PJT Partners filled in as an exclusive financial counsel and Quarles & Brady filled in as legal counsel to SafetyPay.