Paysafe’s first-quarter earnings were characterized by an excellent increase in iGaming and e-commerce transactions, while overall performance was modest. The business is in a strong position to maintain its leading status in specialty payments.
The stock has remained under pressure but the analysts remain optimistic because the company has a solid long-term strategy and expects its cash flow to improve.
Paysafe was formed by several mergers, the most notable of which comprised the e-wallet Skrill and the payment network Neteller. Although Neteller was strong in the United States before the online betting prohibition, it has continued to grow globally.
The reintroduction of iGaming, aided by the online sports betting boom, may help Paysafe build a strong market share in the United States. PaySafe wants to expand its presence in the US gambling market and will offer its payment method to new US casinos, including the recently launched Parx Casino in Michigan. That means bettors will not need to worry about safe transactions anytime they want to bet.
Paysafe stock gain
Paysafe’s first-quarter results were released in early May 2021. The company reported a 5 percent increase in revenue to $377 million. This amount exceeded the predicted estimate by $11 million. The company’s overall payments volume increased to $27 billion and this was a record 8 percent more than the same time in 2020.
One month since the announcement, Paysafe stock at the New York Stock Exchange has increased by 8.8 percent. As of 25th June 2021, the stock was trading at $12.40. Most stock advisors giving investment tips advise the stock shall continue in a bullish curve for the next few months.
Opportunity for cryptocurrency trading
Paysafe recently opened opportunities to clients who want to tap into the ever-expanding crypto market. Although there have been widespread fears of a possible crypto crash, experts advise this is nothing to worry about because crypto prices always bounce back fast.
Paysafe partnered with crypto trading platform Coinbase for US clients in late March 2021. Paysafe Skrill has expanded its U.S. services to 37 states, allowing cryptocurrency exchanges and payments via a white label Coinbase remedy.
Skrill has also revealed that the Skrill VISA Pre-paid card will be available in 2021. This helps it expand its reach further into the underbanked market, which is frequently largely ignored by banks and main payment service providers.
Going with the trends
Globally, the digital economy is rapidly growing and Paysafe was visionary to tap into this market at its earliest. Among its online payment products are Paysafecard and e-cash. With Paysafecard, clients can make online transactions by simply keying in a 16-digit code. This is a cutting-edge remedy to gamblers because they don’t need to carry credit cards, hard cash, or open a bank account.