Paysafe Reports Surging eCommerce and Digital Wallet Volumes

Paysafe’s shares leaped on the heels of earnings Tuesday (Aug. 12) that noted organic growth in eCommerce and digital wallets-related revenues, while transactions were higher by double digits.

The earnings materials stated that the enterprise growth and sales pipelines are “robust,” and transaction volumes were 10% higher year on year to $41.8 billion.

CEO Bruce Lowthers said on the conference call with analysts that top-line momentum should continue, since “compared to this time last year, our enterprise-level deals and the annual contract value of those bookings are up more than 20% year-to-date, with a healthy backlog of signed business across the gaming and FinTech sectors, including digital asset and Paysafe merchants scheduled to go live in the near term.”

With a nod to the recent launch of the company’s PagoEfectivo wallet in Peru, Lowthers said that there had been nearly 40,000 signups and “a strong volume of repeat users. We also see sustained high volumes of website and app store visits.” eCash solutions and online account distributions have seen revenue growth of 37% to sales of $22 million, Lowthers said.

Later in the call, Lowthers told analysts: “We’re building off of an existing portfolio of customers. Eighty-one percent of the customers we surveyed said they would use our wallet. We’re seeing really nice adoption here in the first 40, 50 days — so we feel very good about the progress there. There’s still a long way to go. … But overall, we see some really nice things that are emerging. We see an increase in the number of transactions from our existing Pago customers as they move into the wallet. So their number of transactions per month is more than doubled.”

Separately, eCommerce growth topped 30% in the quarter, and was broad based across several verticals, including iGaming.

Within the small- to medium-sized business (SMB) segment, Lowthers said: “While attrition is slightly elevated from where we want it to be, we’re encouraged by our new growth this quarter, which was up 6% across the SMB portfolio, including growth from the direct channel.”

CFO John Crawford said during the call that the organic revenue growth of 5% was in line with expectations. The figure reflected the continued double-digit growth from eCommerce, in addition to 1% growth from SMB and 3% organic growth from digital wallets, Crawford noted. The three-month actives tally was 7.2. million, up 3% year on year. Merchant solutions volumes gathered 9% to $35.7 billion.

“We’re reaffirming our 2025 outlook based on our year-to-date results and what we expect for the remainder of the year,” Crawford told analysts. “We continue to expect organic growth in the second half to accelerate to the range of 8% to 10%, with the fourth quarter expected to be our strongest quarter for reported growth, organic growth and margin performance.”

Shares were up more than 17% on Tuesday.

Asked on the call about the company’s efforts with Fiserv’s Clover, Lowthers said: “The Clover Capital will be available through the business wallet, and so it reaches directly out to the consumer. So just for clarity, it will be a Clover wallet. And so it will be, in essence, a white-label wallet for Clover that goes to their customer base. We will have a version that goes to our customer base as well.”

Lowthers also pointed to stablecoins as an avenue of additional growth.

“We’ve been using stablecoin for a number of years, and deriving revenue from stablecoin for a number of years,” he said. “Predominantly, it is a mechanism moving from crypto to fiat, fiat to crypto. But I think the use cases are really something that are just in the beginning stages of exploring … we’re trying to figure out how do we leverage our distribution network to leverage that technology more.”

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