Paysafe, a global payments platform, has announced the integration of MoonPay’s technology to facilitate cryptocurrency payments on its platform. This innovation allows customers to fund their accounts using various stablecoins and cryptocurrencies where regulations permit. After verification, the system automatically converts these crypto deposits into U.S. dollars. The integration supports a wide range of digital assets, including USD Coin and other significant cryptocurrencies.
The newly launched service, termed “Pay with Crypto,” is positioned to cater to merchants across multiple sectors, including e-commerce, financial services, retail, iGaming, and daily fantasy sports. This development allows businesses to tap into the potential of cryptocurrency payments without the need for additional integration work.
Despite facing a challenging year, with a 51% decline in share value and a current trading price of $7.19, Paysafe maintains a market cap of $363 million. Recent analysis from InvestingPro indicates that the company may be undervalued, with expectations of a return to profitability following a reported loss of $3.14 per share over the previous twelve months.
Ivan Soto-Wright, Founder and CEO of MoonPay, emphasized the importance of bridging the gap between cryptocurrency technology and its utility in real-world transactions, stating, “Crypto rails are making payments faster and cheaper.”
The Pay with Crypto service utilizes MoonPay Commerce Checkouts technology, enabling transactions via connected crypto wallets or QR codes. Merchants can opt to settle payments either in stablecoins or convert them into U.S. dollars and other fiat currencies through MoonPay’s Virtual Accounts.
Zak Cutler, President of Global Gaming at Paysafe, noted that this service addresses the growing acceptance of cryptocurrency as a payment method in the evolving online gaming market, indicating a shift from viewing cryptocurrencies solely as investment assets.
With a workforce of approximately 2,800 employees across 12 countries, Paysafe operates in various sectors such as iGaming, video gaming, e-commerce, online trading, retail, travel, and hospitality. MoonPay, established in 2019, serves over 30 million customers in 180 countries and works with more than 500 enterprise clients, holding regulatory licenses including a New York BitLicense and multiple money transmitter licenses throughout the U.S.
In related corporate news, Paysafe recently released fourth-quarter adjusted earnings that surpassed analyst expectations despite reporting a slight revenue miss attributed to slower growth in its Merchant segment. Revenue was only marginally below forecasts, down by approximately 1%, with the Digital Wallets segment demonstrating robust performance.
Analyst activity regarding Paysafe has been mixed. UBS has reduced its price target for the company from $7.00 to $6.75, maintaining a Sell rating due to a reported 3% year-over-year decline in its Small and Medium Business segment. Conversely, BTIG raised its price target from $11.00 to $10.00 while retaining a Buy rating, expressing confidence in the company’s capacity to maintain low to mid-single-digit growth rates.
Moreover, Paysafe’s introduction of a new cryptocurrency payment method for iGaming operators and daily fantasy sports users in the U.S. market underscores its commitment to innovation and responsiveness to market dynamics. This feature, powered by MoonPay, enables customers to fund their accounts with stablecoins or cryptocurrencies, converting them to U.S. dollars for gaming purposes, further highlighting Paysafe’s strategic direction to meet contemporary payment preferences.
