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PayPal for online gaming and specialized digital payments.

A global digital payments company like PayPal, but also allowing users to pay online with cash.

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• Payment Processing: This service enables businesses to accept various forms of payments, including credit cards, debit cards, and alternative payment methods, across online, mobile, and in-store channels.
• Digital Wallets (Skrill & NETELLER): These platforms allow consumers to store money, send and receive payments, and make purchases online without directly using bank accounts or credit cards.
• Prepaid Solutions (paysafecard): This product offers a prepaid online payment method, allowing users to pay online using a 16-digit PIN without needing a bank account or credit card.

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Paysafe (symbol: PSFE) primarily sells its payment processing, digital wallet, and online cash solutions to other companies (B2B) rather than directly to individuals. Their customers are businesses that need to process payments from their own end-users.

While Paysafe serves a diverse range of online businesses across various sectors, its largest and most strategically important customer segment is the online gaming (iGaming) and sports betting industry. Given the competitive nature of payment processing, Paysafe does not publicly disclose a comprehensive list of all its major customers. However, based on public announcements and industry presence, the following are examples of prominent public companies in the online gaming sector that have partnered with or utilize Paysafe's services:

• DraftKings (Symbol: DKNG)
• FanDuel (Part of Flutter Entertainment - Symbol: FLTR.L on the LSE, PDYPY as an ADR)
• BetMGM (A joint venture between MGM Resorts International - Symbol: MGM - and Entain Plc - Symbol: ENT.L on the LSE, GMVHY as an ADR)
• Caesars Sportsbook (Part of Caesars Entertainment - Symbol: CZR)

It's important to note that these companies often utilize multiple payment service providers, and Paysafe's specific role may vary by region or product. Paysafe also serves many other online merchants across sectors like digital goods, financial services (forex brokers), and travel, but the online gaming sector represents a significant portion of their identified major customers.

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• Visa Inc. (V)
• Mastercard Incorporated (MA)

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Bruce Lowthers, Chief Executive Officer

Bruce Lowthers joined Paysafe as CEO in May 2022, focusing on transforming the company and driving growth. Prior to his current tenure at Paysafe, he served as President of the Merchant Solutions division at FIS. He was also CEO of Paysafe from June 2019, where he led the company through a turnaround and took it public via a SPAC, positioning it for growth in sports betting and crypto. His extensive background includes serving as CEO of Barclaycard Business Solutions and Global CFO of Barclaycard for over a decade. He spent ten years at Citigroup, with management roles in their credit card division in Brazil. Lowthers co-founded and led four start-up companies and two payments industry associations, the American Transaction Processors Coalition (ATPC) and Payments 20 (P20). His involvement in taking Paysafe public through a SPAC indicates experience with transactions often associated with private equity-backed ventures.

Alex Gersh, Chief Financial Officer

Alex Gersh was appointed Paysafe's Chief Financial Officer on October 3, 2022, bringing over 25 years of international financial leadership experience from public and private organizations in both the UK and USA. Before joining Paysafe, he served as CFO at Sportradar, where he successfully led the company's IPO on NASDAQ in September 2021. He also held the position of CFO and Board Director at Paddy Power Betfair plc, where he played a key role in the merger of Paddy Power plc and Betfair Group plc. His career includes finance leadership roles at NDS Group London, British Telecom, and Motorola.

Roy Aston, Chief Operating Officer

Roy Aston joined Paysafe in February 2019 as Chief Information Officer and later assumed the role of Chief Operating Officer. He is responsible for leading Paysafe's global technology and operations functions, including IT strategy, cybersecurity, transformation, and 24/7 technology and customer operations. Prior to Paysafe, Aston gained extensive experience in IT and operations within global financial services organizations and UK-based fintechs. He served as Group CIO for Barclaycard since April 2013 and held senior roles at Citi as Director of Business and Technology Transformation, and at egg, where he contributed to building the UK's leading online digital bank.

Rob Gatto, Chief Revenue Officer

Rob Gatto joined Paysafe in July 2022 as the company's first Chief Revenue Officer. He leads Paysafe's international sales function across high-growth sectors such as gaming, travel, entertainment, digital assets, and fintech. Gatto has over 30 years of experience delivering transformational growth and 'go-to-market' functions for both private and public businesses. Before Paysafe, he co-founded and served as President of Ureeka Inc., a community dedicated to helping small businesses grow. His previous senior roles include COO at Tubemogul, a programmatic video platform acquired by Adobe Systems for $540 million, and CEO at PointRoll, Inc.

Elliott Wiseman, Chief Legal & People Officer

Elliott Wiseman joined Paysafe in 2011 and holds a dual role, leading both the company's legal function and its people strategy. He oversees a global legal team responsible for commercial agreements, corporate transactions, company secretarial matters, litigation, and data privacy, while also managing global HR and Corporate Communications. Wiseman began his career as a corporate lawyer at several London-based law firms, including Slaughter & May, Debevoise & Plimpton, and Mischon de Reya, where he focused on mergers, acquisitions, and other corporate transactions. Before Paysafe, he was Senior Legal Counsel at MoneyGram International, responsible for legal affairs in their Northern Europe and Asia Pacific regions.

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The public company Paysafe (PSFE) faces several key risks to its business operations and financial performance:

1. Highly Leveraged Balance Sheet: Paysafe has a highly leveraged balance sheet, with a significant net debt and high debt-to-EBITDA ratios. This elevated leverage has led S&P Global Ratings to revise Paysafe's outlook to stable from positive, with expectations that the company's leverage will remain above a 5.5x upgrade threshold until at least 2027. The company's ability to manage and reduce its substantial debt is a principal risk.
2. Exposure to Specialized and High-Risk Verticals & Regulatory Scrutiny: Paysafe's business model includes a focus on specialized and high-risk verticals, particularly iGaming and digital assets. This concentration exposes the company to significant regulatory risks and potential governmental clampdowns in key markets, which can negatively impact earnings stability. Past instances have shown that gambling regulations in European markets can significantly affect Paysafe.
3. Intense Competition and Fintech Disruption: Paysafe operates in a dynamic and highly competitive financial technology (fintech) industry. Rapid innovation and the emergence of new competitors constantly threaten Paysafe's core offerings. This competitive landscape and the potential for fintech disruption can weaken legacy platforms and challenge Paysafe's future profitability and market share.

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• Widespread Adoption of Real-time Payments (RTP) and Open Banking Initiatives: This emerging paradigm shifts payment infrastructure towards direct, instant, and often lower-cost account-to-account transfers, bypassing traditional card networks and some intermediary digital wallets. As these systems (e.g., FedNow in the US, SEPA Instant in Europe, Pix in Brazil) gain global traction, they offer a potentially superior "rail" for financial transactions, akin to Netflix disrupting Blockbuster's traditional content delivery. Paysafe, which relies heavily on traditional payment processing and its digital wallets (Skrill, Neteller) as intermediaries, could face significant disintermediation. Merchants and consumers, especially in high-volume sectors like iGaming, may increasingly opt for direct, instant bank transfers if they become cheaper and more frictionless, reducing the demand for Paysafe's existing service offerings.
• Expansion of Integrated "Super Apps" and Embedded Finance Ecosystems by Major Tech and Financial Companies: Large technology companies (e.g., Block, PayPal, Amazon) and established financial institutions are increasingly building comprehensive "super apps" and deeply embedding financial services directly into their platforms. These ecosystems aim to offer an integrated suite of services, including payments, banking, and lending, similar to how Apple's iPhone integrated multiple functions, threatening specialized devices like BlackBerry. Paysafe, primarily a specialized payment provider and digital wallet operator, faces a threat from these dominant players who can offer a more unified, convenient, and often lower-cost experience to both merchants and consumers. This trend could erode Paysafe's market share as businesses and users are drawn to these broader, more integrated platforms that control the entire customer journey.

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Paysafe (PSFE) operates in several key markets with substantial addressable opportunities through its main products and services:

• Payment Processing: Paysafe offers online payment gateways, in-store point-of-sale (POS) systems, card readers, and mobile payment applications, supporting credit and debit card transactions. The global payment processing solutions market was estimated at USD 103.2 billion in 2023 and is projected to reach USD 160.0 billion by 2028, growing at a compound annual growth rate (CAGR) of 9.2% from 2023 to 2028. North America constituted the largest share of this market in 2023. Paysafe maintains a global presence, connecting businesses and consumers across 120 different markets and supporting over 260 payment types in 48 currencies.
• Digital Wallets: Paysafe provides digital wallet services through its subsidiaries, including Skrill and Neteller. The total value of digital wallet transactions globally is projected to increase from $9 trillion in 2023 to $16 trillion in 2028, representing a 77% rise. In the UK, digital wallet adoption for online commerce is expected to grow from 38% in 2023 to 50% in 2027. For in-store purchases in the UK, digital wallets are predicted to account for 29% of transactions by 2027, up from 14% in 2023.
• Online Cash Solutions (eCash): Paysafe offers eCash solutions like paysafecard and Paysafecash, enabling consumers to make online payments using cash without a bank account or credit card. This service addresses a significant market of unbanked and underbanked individuals. In the U.S., 34% of Americans are unbanked or underbanked and rely on cash for payments. Similarly, in the UK, 5 million people are dependent on cash. Paysafe's eCash solutions are available at over 600,000 retail locations across the United States, giving merchants access to this cash-dependent customer base.

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Paysafe (PSFE) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market trends:

1. Organic Growth in E-commerce and Digital Wallets: Paysafe has consistently reported organic revenue growth, with e-commerce being a significant contributor. The company is seeing continued strong performance from existing customers and an increase in growth contribution from new customer wins within its e-commerce verticals, including iGaming. Digital Wallets also continue to expand, supported by product innovations and new market entries.
2. Geographic Expansion and Strategic Partnerships: Paysafe is focusing on geographic expansion, notably in Latin America, with examples such as the launch of the PagoEfectivo wallet in Peru, designed for cash-based consumers transitioning to digital payments. The company is also pursuing strategic partnerships to enhance its product offerings in payment facilitation and SMB segments.
3. New Product Launches and Innovation: Paysafe is continuously developing and launching new products, including new wallets and e-commerce payment solutions. These new products are anticipated to generate at least 10% of annual revenue from products released within three years.
4. Expansion of Sales Capabilities and New Customer Acquisitions: The company has been expanding its sales capabilities, including adding new sales representatives. This expansion has led to a significant increase in contract value per active sales representative and over 100 new enterprise-level contracts across various core verticals. Paysafe expects growth from new client wins to contribute to overall growth.

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Share Repurchases

• Paysafe launched a stock repurchase program in 2023.
• In February 2025, Paysafe's Board of Directors authorized a $70 million increase to its existing share repurchase program.
• For the trailing twelve months ended June 2025, Paysafe's Repurchase of Stock reflected a cash outflow of -$59.77 million.

Share Issuance

• Paysafe went public through a SPAC merger with Foley Trasimene Acquisition Corp. II, which was announced in December 2020.
• The merger was completed on March 30, 2021, and the combined company began trading on the NYSE under the ticker symbol PSFE.
• The transaction valued Paysafe at an implied pro-forma enterprise value of approximately $9 billion.

Inbound Investments

• The SPAC merger included a $2 billion private placement from various institutional and private investors.
• This $2 billion private placement involved significant investments, including $500 million from Fidelity National Title Insurance Co. and related entities, and $350 million from Cannae Holdings, Inc.
• Investment firms Blackstone and CVC Capital Partners, who had previously taken Paysafe private, continued their investment and support through the SPAC merger.

Outbound Investments

• In February 2025, Paysafe entered into a definitive agreement to sell its direct marketing payment processing business line to KORT Payments.
• The consideration for this divestiture primarily consists of annual earnout payments over the next five years.
• This strategic decision aims to accelerate Paysafe's transformation by exiting a non-strategic business line and focusing on core growth opportunities.

Capital Expenditures

• Capital expenditures include purchases of property, plant, & equipment and purchases of other intangible assets, such as software development costs.
• For the six months ended June 30, 2023, capital expenditures were $55.826 million, an increase from $44.731 million in the same period of 2022.
• An increase in capital expenditures was noted as a factor in the decrease of unlevered free cash flow in Q4 2024.