Paysafe Looks to Digital Wallets to Fuel Growth in 2025
Paysafe says it is looking to its digital wallet business as a growth driver for the coming year.
The payments company on Tuesday (March 4) released quarterly and full-year earnings showing revenue growth of a respective 1% and 6%.
Total payment volume came to $40 billion for the quarter, a 12% increase, and $151.7 billion for the year, up 8%. Paysafe also projected revenue for the year of $1.71 billion to $1.73 billion, which fell short of analysts’ forecasts.
Looking ahead to the remainder of the year, CEO Bruce Lowthers told analysts during an earnings call that the “overarching theme” the company is trying to leverage this year is its white label wallet.
“And, so with that white label wallet platform, it gives us the opportunity to go into Peru, for example, where we have a really strong presence,” in eCommerce, the CEO said.
Later in the call, Lowthers was asked about how Paysafe can differentiate itself from other players in the white label wallet space. He pointed to the company’s “regulatory strength” and strength around anti-money laundering (AML) issues.
“We’re obviously regulated in Europe. We do a tremendous job around the AML issues, put a lot of effort into that,” he said.
These efforts come as research by PYMNTS Intelligence shows digital wallets becoming the preferred choice for consumers around the world as cross-border transactions change.
“From the U.S. to Saudi Arabia, people are leveraging digital wallets due to their fast and efficient way to send and receive money internationally,” PYMNTS wrote last month, following the publication of the report “Global Money Movement: How Digital Wallets Are Transforming Cross-Border Payments,” a collaboration with TerraPay.
“This shift in payment preferences speaks to the demand for convenience and simplicity, the report notes, especially when compared to traditional methods like bank transfers or money transfer services.”
Also on Thursday, Lowthers said the company had “no real comment” on a report from last month that it had received takeover interest.
“You know, we’ve had some unsolicited proposals come in, inquiries come in. You know, we feel very good about the business,” the CEO said.
“We feel like we’re creating a lot of value, with the business, but the board will…execute their fiduciary responsibility and take a look at anything that gets thrown over the rail.”
Also in February, Paysafe said it was selling its direct marketing payment processing business unit, Paysafe Direct, to omnichannel payments provider Kort Payments, a company led by Paysafe’s founder and former CEO, Joel Leonoff.
The transaction positions Paysafe to “sharpen our focus on Paysafe’s ideal customers and verticals in the experience economy,” Lowthers said at the time.
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