Paysafe Platform Cross-Selling and eCommerce Boost Q2 Revenue by 6% YoY

Entertainment-focused payment platform Paysafe posted second-quarter earnings on Tuesday (Aug. 15), driven by its Merchant Solutions segment and growth from eCommerce led by the iGaming industry in North America.

Overall, the company saw revenue for the period increase by 6% year over year (YoY) to $402.3 million, with total payment volume conducted across the platform increasing 6% to $35.5 billion. Revenue from digital wallet use, which saw double-digit growth earlier this year, continued an upward trend this quarter, increasing 5% YoY.

“We continue to drive our sales to reinvigorate growth in our strategic verticals across gaming, digital assets, travel, leisure, and retail and hospitality,” Paysafe CEO Bruce Lowthers told analysts and investors on a call on Tuesday.

Lowthers said the company’s focus on sales transformation and cross-selling resulted in the closing of 37 enterprise deals, defined as agreements with more than $100,000 in annual contract value.

“Additionally, when we look more broadly across deals of all sizes, we booked nearly 150 cross-selling wins across our existing client base compared to very little cross-selling a year ago,” Lowthers added.

Moving forward, Paysafe is looking to capitalize on the growth of the iGaming industry in North America and has expanded its eCommerce relationship with Penn Interactive, an existing digital wallet client and leading operator in the region, to 16 states.

“In North American iGaming, we continue to benefit not only from market expansion but also through our success in cross-selling into the existing customer base, which is a key pillar of our sales transformation,” Lowthers said on the call.

Paysafe has also been actively expanding its product offering and engaged in strategic partnerships with brands in Latin America and Europe, including a sports betting agreement with ESPN as well as cross-selling its products within Europe, such as a recent deal with The Mill Adventure, a licensed iGaming platform.

Online sportsbook betting is on both a fast track and a slow roll. Washington, D.C., and 26 states have legalized online wagering, but operators are undergoing exhaustive reviews state by state to get permission for online wagering from anywhere.

For Paysafe, Massachusetts is the 26th iGaming jurisdiction in which it supports sports-betting operators with online payments after expanding into the state in March to serve the newly legal sports gambling market.