Paysafe to dispose of direct marketing payment processing business
Payments provider Paysafe has revealed plans to sell its direct marketing payment processing business line, alongside the release of its preliminary fourth quarter and 2024 fiscal year earnings.
Paysafe’s direct marketing payment processing business will be sold to Kort Payments, a specialized omnichannel payments provider led by former Paysafe Chief Executive Officer Joel Leonoff.
Following the sale, Kort Payments will receive all reseller and merchant contracts, dedicated technology, and employees related to the business.
Bruce Lowthers, Chief Executive Officer of Paysafe, said, “The divestiture of our direct marketing payment processing business reflects our commitment to portfolio and resource optimization to focus on our largest growth opportunities as a company.
“This accelerates our transformation by exiting a non-strategic business line, bringing a close to the repositioning of our merchant solutions segment. This represents a significant milestone that enhances long-term shareholder value by positioning Paysafe to deliver resilient growth and sharpen our focus on Paysafe’s ideal customers and verticals in the experience economy.”
Paysafe’s Q4 net income is expected to be between US$31 million and US$37 million, whereas its revenue for Q4 will be approximately US$420 million, a 1% year-over-year increase.
Adjusted EBITDA is estimated to decrease for Q4, with an expected $103 million to be generated, a 16% decline compared to 2023.
For the 2024 fiscal year, Paysafe estimates a 6% increase in revenue, with a calculated $1.7 billion generated. However, adjusted EBITDA is expected to decrease by 2%, with only $452 million produced.
Paysafe operates several global payment systems, including the prepaid Paysafecard and e-wallet Skrill, both of which are accepted by many US igaming platforms.
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