Paysafe plans to launch a digital wallet for small and medium-sized businesses (SMBs).
The British payments platform revealed the pending debut of its business wallet Tuesday (Nov. 14) while announcing its quarterly earnings, with CEO Bruce Lowthers noting the wallet will be used to collect merchant acquiring settlements.
“Over time, the range of money moving capabilities and services will be expanded with a longer term product vision to combine foundational capabilities along with addressing the underserved needs of our SMB clients,” Lowthers said during an earnings call.
“Ultimately, we’re focused on driving the wallet here in the U.S. in a way that adds value for our merchants while also creating a flywheel effect.”
He added that Paysafe recognized an opportunity to widen and improve its wallet platform for unbranded solutions.
“Our foremost objectives are to enrich the capabilities of our wallet platform and facilitate the growth and success of our merchant partners,” Lowthers said.
“Our focus is on empowering businesses to create customer experiences aligned with their brand by leveraging the advanced features of our platform.”
The company’s earnings report showed third quarter volume in digital wallets was $5.6 billion, up 18% year over year. Digital wallets revenue for the third quarter came to $182.9 million, an increase of 12% year over year and a 5% increase on a constant currency basis.
“Growth from the digital wallet segment was also supported by the new product features launched in Q2, contributing 1.8% to growth, as well as interest revenue on consumer deposits,” Paysafe Chief Financial Officer Alex Gersh said.
Overall revenues came to $396.4 million, an increase of 8%, marking the fifth consecutive quarter of revenue growth. Total payment volumes reached $35.8 billion, up 8%.
Paysafe’s digital wallet plans come amid a rise in popularity for this payment method, particularly among millennial consumers.
Although millennials trail Generation Z among consumer demographics who are willing to try new methods overall, 67% of millennials reported they have adopted digital wallets. And 44% of millennials said they believe mobile wallets can replace most or all features of a physical wallet.
According to “Mobile Wallet Challenge: Replacing Physical With Digital,” a collaboration between PYMNTS and ACI Worldwide, millennials use the most wallet features compared to all other age demographics, an average 8.1 per user.