Paysafe is made in Latam with SafetyPay
Recently, the electronic payment solution Paysafe closed important agreements in Latin America. After the acquisition of the Peruvian internet payment platform PagoEfectivo, Paysafe has just announced the purchase of SafetyPay, the most important cardless alternative payment network in Central and South America. With the spread of internet gambling in the region, alternative online payment methods are becoming increasingly important, providing reliable and secure solutions that compete with classic electronic wallets.
Although Visa is still one of the preferred payments by internet gaming users, alternative payment methods such as AstroPay, Bizum or Paysafe are expanding in New Zealand and Latin America. ©energepic.com/Pexels
The e-commerce it has experienced a boom during the pandemic around the world and Latin America has not been alien to this expansion of digital communications . We have seen how in the regulated markets of Latam the customers of casinos, betting sites and traditional gaming salons have been moving to the online world.
There are basically two reasons that explain this displacement. First, the regulated market offers the necessary scaffolding for safe and responsible gambling on the internet, very important for the mentality of the Latin American player who needs reliable environments .
The second reason is the expansion of the offering alternative payment methods , which include cryptocurrencies, which have simplified financial transactions over the internet. Safe deposit and withdrawal methods are of great importance for the igaming industry that is experiencing its particular resurgence in Latin America. At spectacular growth that internet games have experienced in Colombia, the interest in legislating the digital game in Chile and Peru .
Paysafe is gaining a foothold in Latin America
After taking over the cardless internet banking system PagoEfectivo, the Peruvian platform that was part of the media conglomerate Grupo El Comercio, Paysafe (which includes the payment methods paysafecard online, the Skrill and Neteller wallets as well as Paysafecash) has announced the purchase of SafetyPay , another digital banking giant in Latin America, for $441 million.
SafetyPay was born in 2007 as a cardless electronic payment platform. With an international vision, it is soon positioned as a secure online system for Latin American consumers and merchants who can make cross-border transactions and payments in the local currency. It has a solid network of customers, merchants and banks in 11 Latin American countries and with coverage also in Europe: Germany, New Zealand, Portugal or Italy. It has more than 180,000 cash collection points and serves about 300 businesses.
As stated in a press release published last August 16, at Paysafe they have been observing the rapid expansion of e-commerce in Latin America and the possibilities for strategically position itself in the nascent online banking market . SafetyPay ensures a solid base with the main banks in Latin America, something fundamental for Paysafe that will make good use of the multiple collection points of the SafetyPay network in the different countries of the region.
In the same press release, Philip McHugh, CEO of Paysafe, put the emphasis on the construction of online cash payment solutions and online banking that the igaming industry will take good note of, which needs alternative payment methods that go beyond the use of PayPal, a payment method that has been deflating.
“By combining the capabilities and open banking network of both SafetyPay and PagoEfectivo with our existing solutions in processing, digital wallets and eCash, together with our valuable experience in specialized verticals such as iGaming, travel and digital goods, we can become the true market leader in the region and offer merchants unique and powerful combinations to grow their business.” – Philip McHugh , CEO of Paysafe, in press release
The use of digital payment methods has accelerated with the pandemic. Traditionally, Latin America is still very attached to the cash payment . But with the digitization of all financial operations, more and more users are relying on online banking systems and digital wallets. Secure and real-time payments throughout Latin America are the advantages offered by platforms such as SafetyPay.
The Spanish market opens up to digital solutions
The expansion of Paysafe in Latam is not an isolated event. Online banking companies are searching for niche markets with strong local involvement, which is the basis for building solutions that customers and merchants alike can trust. We cannot overlook that financial digitization is also regulated , so the legal frameworks for action are important.
One of the payment methods that after a great success in the American continent has begun its expansion in Europe is the AstroPay virtual card , which would have already started operations in New Zealand. AstroPay is strongly rooted in Latam. Other solutions such as Bizum have consolidated and grown spectacularly. Bizum already has more than 14 million users . Many regulated online casinos today offer Bizum as the main payment system.
The process of digitization of banking and payment systems is unstoppable . It remains to be seen the role that cryptocurrencies and technology will play blockchain in this process, as there is still no legal framework that offers "guarantees and levels of protection similar to those of other regulated and supervised financial products” , indicated Ana de la Cueva, who was Secretary of State for Economy and Business Support until May 2021, in an article published by the newspaper Expand .
