Paysafe reports disappointing numbers for Q3 and bleak forecast

Karthik Subramanian

Paysafe, one of the largest payment processing companies with a global presence, has reported Q3 numbers which showed a slight drop from the earnings and transaction volumes that were reported in Q3 of 2020.

paysafe

This came in as a big surprise as the numbers in 202 were largely skewed to the downside due to the pandemic when there was not much usage of such platforms. The fact that this quarter has been worse than last year shows how much the company has been suffering. The company posted adjusted earnings of $106.4 million and revenues of $353.6 million which was 1% less than compared to the same quarter last year and its profit forecasts for the rest of the year was also lowered down by the company. The company said that the lower numbers were due to the exit of certain clients in the direct marketing vertical but what it does not say is the fact that it has been facing increasing challenges from new and existing players.

“In the third quarter we reported Adjusted EBITDA in line with our expectations, despite softer than expected revenue, reflecting both market and performance challenges within the digital wallet business,” said CEO Philip McHugh. “While the recent trend will drive an adjusted financial outlook, we continue to see strong momentum across the business.”

The digital payments industry has undergone a large growth in transaction volumes during this year as more people prefer to pay online and on mobile but this has also led to the entry of many startups into the business trying to take a slice of the pie. The existing players like Paypal have also been investing heavily into new technology like crypto and adding upgrades and features, while also looking to expand into new regions with new products, while Paysafe has been generally stagnant during this period. Though it has also got on to the crypto train, it is already a fully loaded train and unless a business innovates itself, it is likely to be left behind quickly in this space. This is the challenge that Paysafe seems to be facing now.

It seems to have realised this challenge a bit late but has been trying its best to catch up as can be seen from its acquisition of viafintech over the last few weeks in a bid to expand into the German and neighbouring regions. It remains to be seen whether this would help to turn around its sagging fortunes.

Read this next

Digital Assets

CME Group to launch reference rates and indices on Avalanche (AVAX), Filecoin (FIL), and Tezos (XTZ)

Several leading crypto exchanges and trading platforms will provide pricing data for these new benchmarks, starting initially with Bitstamp, Coinbase, Gemini, itBit, Kraken, and LMAX Digital.

Technology

OneConnect launches operation in ADGM further expanding in Middle East

OneConnect has launched its regional operations in Abu Dhabi Global Market (ADGM), the leading international financial centre of the capital of the UAE, after having worked together on the creation of the ADGM Digital Lab which was launched in April 2021. The ADGM Digital Lab is a marketplace and industry sandbox to encourage the development […]

Industry News

Bitso powers crypto into Via’s payroll platform as remote work triples by 2027

“We are also allowing companies to hire international talent without worrying about administrative issues.”

Retail FX

Vantage partners with FinaCom for external dispute resolution and up to €20,000 protection per client

Vantage has joined the Financial Commission (FinaCom) as a member, thus gaining access to the external dispute resolution body’s range of services and membership benefits, including the unbiased resolution process facilitated by FinaCom, and the protection of up to €20,000 per client, covered by the FinaCom’s compensation fund.

Digital Assets

LMAX Digital onboards Bryan Christian and Cassandra Cox to lead sales

Institutional cryptocurrency exchange LMAX Digital continues to undergo a series of changes in its top ranks as it continues to build its presence globally. Two industry veterans, Bryan Christian and Cassandra Cox, have joined the group as its newest sales directors in Europe and USA.

Digital Assets

Cake DeFi introduces Ethereum Staking with 5% returns

Cake DeFi, a Singapore-based DeFi platform, is launching its Ethereum (ETH) staking service for retail and institutional customers.

Retail FX

FX trading rebounds 405pct at Saxo Bank in September

In a volatile market driven by Russia-Ukraine headlines, FX trading volumes through Saxo Bank have rebounded strongly in September to the highest level in three months.

Retail FX

CMC Markets’ stock climbs as H1 revenue to climb +20%

CMC Markets PLC (LSE:CMCX) shares spiked 5.6 percent to 235p in Thursday’s trading after the firm’s trading update for the first half of its fiscal year 2023 revealed results at the high end of company projections.

Retail FX

Interactive Brokers doubles client accounts to 2 million in 24 months

Electronic brokerage firm Interactive Brokers LLC (NASDAQ:IBKR) said its trading volumes took a slight step back in September, an indication that investor confidence is still fairly mixed over the past few months.

<