Electronic payment services, also known as e-wallets, form the backbone of today’s modern financial transactions on the Internet. Whether online shop, service via the World Wide Web, or deposits and withdrawals between players in online casinos, hardly any company can still afford to do without this form of payment traffic. Leading the way in the first league of these e-wallet companies, the Paysafe Group is playing more and more by its three major brands, Paysafecard, Skrill and Neteller, around the world. Easy transfer of money over the Internet is the core business of the Paysafe Group and the still unbroken growth in this market segment also make the cash register with this competitor of PayPal strong ring. As announced by the company in a pre-announcement on company figures over the last 12 months, the entire money-transacting business, most of which is generated by online casinos and other Internet platforms for gambling, was outstanding and far better than at the beginning of the year 2016 itself was prognosticated. For the first time in the changing history of this company, the magical threshold of 1 billion US dollars in sales is reached and the other key figures of the Paysafe Group have also been very well received by investors.
The second half-year exceeded all expectations
According to the company’s own statements, the grand development of the Paysafe Group was mainly due to the very strong second half-year, which far exceeded all expectations. At the beginning of last year, a total turnover of about 868 million US dollars was forecasted for 2016, which is now expected to be slightly more than a billion. This would then be about 13 percent above their own self-imposed goals. The earnings before taxes, interest, depreciation and amortization were also significantly revised upwards in the wake of the famous increased business operations. Overall, EBITDA is expected to be slightly more than $ 300 million from the business with online casinos and internet shops worldwide. This means that the Paysafe Group is also setting a new record for this business-to-business ratio. A good 15 percent increase in the company’s own forecasts from the past year, the investor’s friendships, has been adjusted. At the beginning of last year the company still expected an EBITDA for 2016 of around 250 million US dollars. In addition to the improved business environment, the faster integration of the E-Wallet service provider Skrill, which was only acquired in mid-2015, contributed to the good result.
The moving history of the Paysafe Group
The history of the Paysafe Group is also the history of the market for e-Wallet companies in general and their increasing merging through acquisitions. Since the company’s beginnings in 1999, a lot has changed in this area. At the beginning of the new millennium, the Paysafe Group, still under the old name of Neteller, which now only serves as a brand, entered the still fresh online market for cash payments and soon became a serious competitor to PayPal. For many years, Neteller has made a name for itself as the most popular payment service provider for online casinos in the USA, until the authorities in 2007 fought hard against the company itself and against founder Stephen Lawrence. In the end, the withdrawal from the US market was forced and the business collapsed massively. In 2010, sales amounted to just 68 million US dollars. Due to the great imagery Neteller was forced to change his company name in Neovia Financial and to leave Neteller only as a brand. In 2011 the name was changed again in Optimal Payments, after the same company from Canada was taken over. In February 2013, the start-up shot was taken to buy a whole series of competitors. The former Austrian company Paysafecard was bought by Skrill for 140 million euros before the entire company became Optimal Payments in mid-2015. By the now well-known and well-known brands Skrill, Neteller and Paysafecard, the company decided again for a change of name, in order to take this condition into account and now operates as Paysafe Group.