LONDON - Paysafe (NYSE:PSFE), a global payments platform, has announced a partnership with Deutsche Bank AG (NYSE:DB), Germany's leading retail bank, to offer a new cash service to the bank's private customers. The service, utilizing Paysafe's barcode technology Paysafecash, branded as viacash in Germany, will enable Postbank customers to deposit and withdraw cash at over 12,500 retail locations starting in November, with plans to extend the service to Deutsche Bank customers in the second half of 2025.
To use the service, customers will generate a barcode within their banking app using the "Bargeld Code" feature. This barcode can then be scanned at participating stores such as REWE, Penny, DM, Rossman, and others, allowing for cash transactions without the need for a traditional bank branch or ATM. The service aims to provide a seamless experience for users to access their cash through a digital interface.
Bob Legters, SVP Product at Paysafe, emphasized the significance of the partnership and the digitalization of cash services in today's increasingly digital economy. He stated that the collaboration would allow millions of Deutsche Bank customers to utilize Paysafe's network and manage cash through their mobile app.
Thorsten Peppler, COO Personal Banking Germany at Deutsche Bank, highlighted the expansion of the bank's cash services beyond bank counters and ATMs to a widespread network of supermarkets and pharmacies. He noted that Postbank and Deutsche Bank are the first major banks to offer this digital cash service option in Germany.
Paysafe, with over 25 years of online payment experience, processes an annual transactional volume of $140 billion and employs approximately 3,200 people worldwide. The company provides payment processing, digital wallet, and online cash solutions, facilitating transactions across 260 payment types in over 40 currencies.
This partnership reflects the ongoing relevance of cash transactions in the digital age and the financial industry's adaptation to consumer needs for flexibility and convenience in managing their money. The information for this article is based on a press release statement.
In other recent news, Paysafe has reported a 9% increase in revenues for the second quarter of 2024, reaching $440 million, largely due to high volumes in e-commerce and advancements in its eCash business. As a result, Paysafe has raised its full-year revenue forecast to a growth of 7-8%. In addition, Susquehanna has maintained a Neutral rating and $23.00 stock price target for Paysafe, while RBC Capital Markets have increased the stock's price target to $25.00.
Furthermore, Paysafe has expanded its board with the appointment of Marianne Heiss, former CEO of BBDO Group Germany, and appointed John Crawford as their new Chief Financial Officer. These recent developments reflect Paysafe's strategic initiatives and growth plans. However, despite these positive trends, Paysafe is also addressing challenges such as the stagnation in the growth of digital wallet users and the anticipated impact of removing additional high-risk merchants from its portfolio.
These are the recent developments in Paysafe's ongoing journey.
InvestingPro Insights
Paysafe's recent partnership with Deutsche Bank aligns with the company's growth strategy and market positioning. According to InvestingPro data, Paysafe has shown a strong revenue growth of 8.37% over the last twelve months, with Q2 2024 revenue reaching $1.67 billion. This growth trajectory is supported by the company's expansion into new markets and services, such as the cash solution partnership with Deutsche Bank.
InvestingPro Tips highlight that Paysafe's stock price has seen a significant uptick over the last six months, with a 49.9% price total return. This positive momentum could be attributed to strategic moves like the Deutsche Bank partnership, which expands Paysafe's reach in the German market.
Despite these positive indicators, it's worth noting that Paysafe is not currently profitable over the last twelve months. However, an InvestingPro Tip suggests that analysts predict the company will be profitable this year, which could be influenced by new revenue streams from partnerships like the one with Deutsche Bank.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 5 more InvestingPro Tips available for Paysafe, providing a deeper understanding of the company's financial health and market position.
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