Skrill owner sells Paysafe Pay Later business to KKR backed Heidelpay
Heidelpay Group, the fast-growing German payment companies, announced that it was acquiring Paysafe Group’s Paysafe Pay later business. The new acquisition will help the company get into the fast-growing business of instalment payment solutions.
Heidelpay Group expansion continues
For starters, Heidelpay Group is one of the fastest-fintech companies in Germany. Started in 2003, the company provides multiple payment services, including payment solutions, omnichannel solutions, and point of sale solutions. It does this through its various subsidiaries that include Avanti, mPAY 24, Universum Group, and ec-plus among others.
The firm was acquired in 2019 by KKR, an American private equity giant, for more than $668 million.
Paysafe Group, on the other hand, is a leading payments company that owns some of the most popular brands. Among them are Skrill, Neteller, and Paysafe, all which help people send money and make payments.
Its Paysafe Pay Later solution helps companies in the DACH region grow by offering a platform that enables them to offer items on credit. In a statement, Claire Gates, CEO of Paysafe Pay Later said:
“We believe we have found the right long-term owners for Paysafe Pay Later in Heidelpay. They are committed to the deferred payments sector and we wish Claire and the entire team all the very best as they prepare to enter the next phase of their journey.”
In his statement, Mirko Hullerman, the CEO of Heidelpay Group said:
“Paysafe Pay Later is a great company with strong leadership and a talented, experienced team. They have built a deep customer base across the DACH region and are very experienced in developing pay later payment services.”
Pay later services thriving
By acquiring Paysafe Pay Later, Heidelpay is joining an industry that is growing around the world. In Australia, companies like AfterPay and Zip are among the best-performing firms in the country. Indeed, AfterPay is now the biggest technology company in Australia with a market capitalisation of more than $20 billion. Zip, a company started in 2013 has a valuation of more than $2.5 billion.
Meanwhile, Affirm, an American company has a valuation of more than $3 billion. Klarna, a European company is worth more than $5.5 billion.
By divesting the Pay Later business, Paysafe wants to increase its focus on the equally thriving international businesses. A few weeks ago, we reported that Skrill was challenging PayPal directly by lowering its fees. In a statement, Paysafe’s CEO said:
“This sale reinforces our strategic direction of focusing on our core payment processing, digital wallets and e-Cash businesses.
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