Digital Wallets Give Paysafe a Door Into AI Commerce

As digital wallets, eCommerce and AI-powered payments continue reshaping online commerce, Paysafe used its latest quarter to position itself at the intersection of those trends while also navigating some of the pressures that can come with scaling a global payments platform.

The company reported first-quarter revenue of $442.7 million, up 10% year over year.

Wallets, eCommerce and Agentic Commerce

Paysafe CEO Bruce Lowthers said on the Wednesday (May 13) conference call that the quarter reflected continued momentum across sports betting, digital wallets and Latin American markets, alongside investments designed to support AI-enabled commerce.

Lowthers also pointed to accelerating adoption of Paysafe’s wallet products across Europe and Latin America. Active users reached 7.9 million in the quarter, up 9% year over year.

The company’s digital wallets segment generated $216.3 million in revenue, up 15%, while wallet volume increased 19% to $7.1 billion. Within merchant solutions, eCommerce revenue increased 17%, led by 28% growth in iGaming. Paysafe also highlighted strong activity tied to the NFL playoffs, Super Bowl and March Madness.

Lowthers said the company is increasingly focusing on how payments infrastructure can support agentic commerce models where artificial intelligence assistants initiate transactions on behalf of consumers. He told analysts, “With one integration, Paysafe can enable merchants to offer AI powered commerce across ChatGPT, Claude, and Gemini along with their own portal and apps.”

According to Lowthers, the company sees agentic commerce as “a meaningful evolution in how transactions originate.”

The company also continued leaning into automation internally. Paysafe management noted on the conference call Wednesday that nearly 60% of consumer support interactions were resolved through digital assistance channels during the quarter, up 25% from a year ago.

Latin America and Wallet Adoption Gain Momentum

Latin America remained one of the company’s strongest growth engines.

Paysafe said its local payments network and wallet offerings continue gaining traction across the region as consumers shift from cash toward digital payment methods. The company reported that Latin America active users reached 3.3 million during the quarter, the highest level to date.

The company’s PagoEfectivo Wallet product was also highlighted as a contributor to user growth and engagement. Paysafe said its Latin America network now spans roughly 400,000 collection points and covers about 90% of local payment method coverage across key markets.

Lowthers said the company’s wallet expansion in Europe is also gaining ground.

“We are much more aggressive about consumer acquisition today than we ever have been,” Lowthers said during the Q&A session.

He also said PaysafeWallet recorded its strongest month on record in March.

Credit Losses Pressure Margins

Even as revenue trends strengthened, the company acknowledged pressure described as being temporary in nature.

Lowthers said Paysafe experienced “increase in credit losses while converting to a new risk management platform.”

He added that the losses “were contained over the course of a few weeks beginning in March and shouldn’t have an impact on the business going forward as our models continue to mature.”

Those higher losses weighed on profitability in the merchant solutions segment. Adjusted EBITDA for merchant solutions declined to $28.1 million from $29.4 million a year earlier, while adjusted EBITDA margin fell to 12.2% from 13.5%.

CFO Highlights Investments and Outlook

Chief Financial Officer John Crawford said the company’s results also reflected elevated investments in marketing and technology infrastructure.

The company ended the quarter with a leverage ratio of 5.2x, down from 5.5x at the end of 2025.

Looking ahead, Paysafe reaffirmed its full-year guidance. The company continues to expect revenue growth and adjusted EBITDA growth in the range of 5% to 8%.

Shares soared 14% in early trading on Wednesday.