Paysafe Sells Direct Marketing Payment Processing Business to Kort Payments

News Summary

Paysafe Limited has sold its direct marketing payment processing division, Paysafe Direct, to Kort Payments, led by former CEO Joel Leonoff. The sale includes technology, contracts, and employees, aiming for closure within 30 days. Paysafe’s CEO emphasizes a focus on core areas post-transaction, while Kort Payments seeks growth in the US market. Despite a revenue drop in this segment, Paysafe reports overall growth and expands into Brazil’s iGaming market, indicating a strategic shift for both companies.

Paysafe Sells Direct Marketing Payment Processing Business to Kort Payments

In an exciting development in the world of payment processing, Paysafe Limited has decided to part ways with its direct marketing payment processing division, known as Paysafe Direct. The company has agreed to sell this business line to Kort Payments, an omnichannel payments provider that is led by none other than Joel Leonoff, the founder and former CEO of Paysafe.

A Smooth Transition Ahead

The transaction is set to include not just the payment processing technology but also all related reseller and merchant contracts, as well as the dedicated employees associated with the business. Both companies are working towards finalizing the details, and the sale is expected to close within the next 30 days, contingent upon wrapping up transition services.

Paysafe’s Strategic Focus

Paysafe’s CEO, Bruce Lowthers, emphasized that this divestiture underscores the company’s serious commitment to optimizing its portfolio and resources. After thoroughly reviewing its options, Paysafe decided that exiting this non-strategic business line would serve the long-term interests of its shareholders better. Post-transaction, the company will shift its focus towards its core customers and significant verticals within the burgeoning experience economy.

Kort Payments: A Bold Move

For Kort Payments, this acquisition is not just a simple expansion but a crucial step in its aspirations for aggressive growth in the US market. Joel Leonoff has expressed strong confidence that this acquisition aligns perfectly with Kort Payments’ commitment to bringing innovative solutions across North America. The transaction will primarily involve annual earnout payments, but specific financial details were not disclosed.

Addressing Business Performance

46% drop in revenue from its direct marketing payment processing business during the last quarter, which undoubtedly contributed to this decision. Despite this decline, the company still achieved a 6% increase in total revenue for the fiscal year ending December 31, 2024, totaling approximately $1.71 billion. This demonstrates that while one segment is struggling, others are still thriving.

Future Prospects for Paysafe

$19 million and $25 million for the fiscal year 2024, which is a turnaround from a loss of $20 million the previous year. To further bolster its financial standing, Paysafe has also announced an increase of $70 million to its existing share repurchase program. The outlook appears bright, with projected revenue growth between 6.5% and 8% for 2025 and expectations for double-digit growth in adjusted EBITDA.

New Ventures in Brazil

payment institution license from the Central Bank of Brazil, paving the way for its entry into the Brazilian iGaming and online sports-betting markets. This move further signifies the company’s commitment to expanding its global footprint and tapping into new opportunities.

In Summary

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Additional Resources

• PYMNTS: Paysafe Sells Direct Marketing Payment Processing Business to Kort Payments
• Wikipedia: Paysafe
• Electronic Payments International: Paysafe to Sell Business Line
• Google Search: Paysafe KORT payments
• Gambling Insider: Paysafe FY24 Revenue Up 6%
• Google Scholar: Paysafe Revenue Growth
• Royal Gazette: Paysafe Ltd Sells Business Line
• Encyclopedia Britannica: Paysafe
• Fintech Futures: Merrco Payments Rebrands to Kort Payments
• Google News: Paysafe Direct Marketing