Paysafe, a specialized payments platform, on Wednesday said it has completed its acquisition of PagoEfectivo, a Peruvian-based alternative payments (APM) platform.
PagoEfectivo, formerly a subsidiary of Empresa Editora El Comercio S.A., (Grupo El Comercio), is a provider of eCash and open banking payments that enable millions of consumers in Latin America, many of whom are underbanked, to transact online.
Founded in 2009, PagoEfectivo’s payment options also are used by consumers in neighboring Ecuador and the company plans to expand into other Latin American countries.
The company said its solutions are particularly popular with merchants operating in the online gaming, digital goods, travel and eCommerce industries, among others, closely mirroring the industries in which Paysafe specializes.
Paysafe noted the investment gives it a strategic foothold in Latin America, which it described as one of the world’s fastest-growing online markets where merchants and consumers alike are demonstrating an increased appetite for alternative payment methods and open banking solutions.
According to Paysafe, the PagoEfectivo deal, together with its recently announced plans to acquire SafetyPay, will help position the company as a prominent payments partner in the Latin American region.
The integration process of combining PagoEfectivo with Paysafe’s eCash and Open Banking division under Udo Mueller will commence, the two companies said. PagoEfectivo CEO Juan Fernando Villena has accepted a new leadership role within the division and the full Pago Efectivo team is transferring over.
Once the SafetyPay transaction closes later in the year, Paysafe said its expanded eCash business will be able to offer eCash and open banking solutions in some 60-plus countries via more than 1m distribution points.
“This strategic acquisition is a success on many levels for Paysafe,” Philip McHugh, Paysafe’s CEO, said in a statement. “First, it reinforces our strategy of building on our strengths in specialized payments and growing our presence in fast-growing regions. Second, it allows us to cross-sell more of our payments offerings, including digital wallets and payment processing services, to an expanded merchant customer base that operates in industries we are very focused on. Third, the addition of Juan Fernando and his team to our eCash division brings us further talent and payments expertise; no doubt about it, PagoEfectivo has an impressive track record for growth, and for possessing the pioneering flair and customer focus that we look for in Paysafe.”
