Paysafe continued to perform well in 2023, during its most recent trading period. It announced an important new partnership with Fanatics.
The payments provider said double-digit gains from its ecommerce solutions and classic digital wallets was a major contributor towards an 8% rise in revenue to $396.4m (EUR370.1m/PS322.6m).
This figure increased by 5% in constant currencies, but excludes a $11.9m positive impact of changes in exchange rates.
Paysafe has confirmed that its revenue is expected to range between $1.59bn ($1,60bn) and $1.59bn ($1,60bn) for the entire year. The outlook for the full year was raised after H1’s success. The original projection of revenue ranged between $1.58bn to $1.60bn.
The revenue from the Merchant Solutions division increased by 6%, to $216.8m. This was largely due to double-digit increases in ecommerce. Paysafe earns 54% from this segment, which is about the same as it was a year earlier.
Digital Wallets revenue increased 12% on a reported currency basis to 182.9m and 5% in constant currencies. Paysafe reported that ecash solution declines were more than compensated by growth in double digits from traditional digital wallets.
This is partly due to the business’s initiatives to improve consumer engagement, and checkout rates for merchants. The growth of the Digital Wallets Segment, according to it, is also driven by new features, and revenue from interest on deposits made by consumers.
Paysafe has said that it is advancing its operational priorities in terms of client experience, product innovation and customer service. Paysafe said it had improved its branded wallet portfolio and enhanced the customer experience.
Strategic initiatives inspire Paysafe to grow
In terms of earnings, the net loss for Q3 attributable to business was $2.5m.
The adjusted net income increased by 21% in Q3 to $35,3m. The strong growth of adjusted EBITDA was offset by higher costs related to interest, taxes and depreciation.
Selling, general, and administrative costs dropped 8.3%, while the cost of services, excluding amortisation and depreciation, increased by 8.7%.
Total adjusted EBITDA was $116.1m for the third-quarter. It was a 22% increase compared with $95.5m for the same period last year.
Adjusted EBITDA increased by 18% in comparison to the previous year.
Paysafe’s adjusted EBITDA for the third quarter increased by 320 basis point to 29,3%, up from 26.1%. The lower credit loss and increased operating leverage were the main reasons for this.
Bruce Lowthers said, “These results confirm that our playbook has been executed successfully and is providing us with the basis to achieve our strategic objectives and our commitment to reaching our mid-term goals.” “I want to thank my extraordinary team for their tireless work in realigning Paysafe’s pursuit of operational excellence.”
Revenue for the nine-month period ending 30 September was an increase of 6.3%, to $1.19bn. The adjusted EBITDA increased by 11.3%, to $336.9m.
Paysafe has announced that Nicole Carroll will be taking on the role of Chief Strategy and Innovation Officer, a newly-created position.
Carroll’s role will include developing the corporate vision of Paysafe and its long-term strategy for growth. She will be responsible for Paysafe’s capital investment and product innovation programmes.
Fans sign up for Paysafe
Paysafe also has integrated Fanatics Sportsbook. In five US States, the provider will accept traditional credit card payments as well as alternative payment methods from Fanatics’ customers.
Paysafe supports card transactions, allowing customers in Kentucky, Maryland Massachusetts, Ohio, and Tennessee to use debit cards, APMs, and Paysafecash – the online barcode cash solution.
Paysafe’s Zak Cutler said, “With the prestige of Fanatics in the sporting world, we are proud to partner up with Fanatics Betting and Gaming and provide their customers with an unmatched payments experience.”
We’re confident our “all-in-one” payment solution will surpass the transactional expectation of Fanatics Sportsbook’s diverse client base.
