Paysafe looks to pocket profits by bolstering its digital wallet business

Hayley Kirton
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Payment solutions company Paysafe has revealed it hopes to rake in the cash from its digital wallet business, including launching a new mobile-enabled wallet in September.

Joel Leonoff, Paysafe president and chief executive, described the product in the pipeline as being focused on generic goods, including pharmaceutical products, groceries and alcohol.

"What we're building and what we're delivering is the mobile wallet but also, for the merchants, a delivery module, a pick-up module, a loyalty module, an analytics module, so that they can start understanding who their customers are," Leonoff told City A.M.

The new offering has been sparked out of the company's purchase of Montreal-based FANS Entertainment, which it announced last year.

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Also today, the company reported revenue for its first half of this year had increased to $486.7m (£373.2m), up 118 per cent compared with $223m the year before. Revenue in the company's digital wallet division had grown by 195 per cent.

The company also upgraded its expectations, including boosting its outlook for revenue for the full year to between $970m and $990m.

"Obviously I'd like to try and hit the $1bn figure," said Leonoff. "It would be a great accolade to get under our belt...but I think if we hit....$980m of revenue, we'd be in wonderful shape."

Last year, Paysafe completed its acquisition of digital wallet service Skrill and, today, announced its integration had been completed, comfortably ahead of schedule.

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Leonoff said the purchase had "certainly added to the business", adding that, while the plan was to continue to grow the business organically, the management was always looking for fruitful M&A possibilities.

"I think we've done a good job to date and I think there's good opportunities that are out there still," Leonoff said, and continued that he didn't think there were currently any "gaping holes" in the company's business in a geographic respect.

Shares in the company, which joined the FTSE 250 in March, closed up 5.8 per cent at 413.9p.

Paysafe revealed its results the day after the Competition and Markets Authority published its final report from its investigation into the retail banking sector, which focused heavily on how technology could be used to disrupt the industry.

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