CONNECT WITH US
Fintech

Fintech

Paysafe Flags Payments Slowdown as Digital Wallets Volume Rises 1% in Q3

PYMNTS – Fintech logo

Published on

Add as a preferred source on Google
Paysafe Flags Payments Slowdown as Digital Wallets Volume Rises 1% in Q3

Paysafe’s wallet transactions per active user held steady, but shares plummeted Thursday in the wake of earnings results.

Paysafe’s digital wallets gained users in the third quarter, but payment volume barely grew as weakness in cryptocurrency and financial trading weighed on the business, according to earnings results released Thursday (Nov. 12).

Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

Companywide payment volume grew at a high-single-digit rate in July before growth slowed in August and September, according to management commentary on a Thursday earnings call. The slowdown continued into October as banking, regulatory and market pressures weighed on digital wallets and eCommerce. The euro weakened against the dollar, and data licensing deals fell short of what management had counted on to help offset the weaker payment activity.

“The second half has been more challenging than we expected,” Paysafe CEO Bruce Lowthers said on call.

Shares were down more than 30% at the beginning of trading Thursday.

Latin America continued to grow at a double-digit rate, but Lowthers said tougher market conditions limited how much the region could make up for weakness elsewhere. The region’s rapid user growth also changed the mix of the wallet business, putting pressure on average revenue per user.

In eCommerce outside iGaming , Chief Financial Officer John Crawford said Paysafe had moved more slowly than planned on banking relationships and some products. He said he expects these constraints to persist through the fourth quarter.


Source link
Related Topics:Fintech

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.