Merger with Special Purpose Acquisition Company announced by Paysafe
Paysafe, a prominent player in the digital payments industry, is set to re-enter the competitive cross-border payments sector following a $9 billion merger with Foley Trasimene Acquisition Corp II. The deal, expected to be completed in the first half of 2021, marks one of the recent examples of companies using the Special Purpose Acquisition Company (SPAC) route for their public listings.
The SPAC merger route has gained popularity due to its faster and lower-cost nature compared to traditional Initial Public Offerings (IPOs). Intermex, a strong performer in 2020, took the SPAC route back in July 2018, and it seems Paysafe is following suit.
Once the merger is finalised, Paysafe will be listed on the New York Stock Exchange under the symbol PSFE. The company will find itself back in competition with companies like Intermex, as well as other cross-border payments heavyweights such as PayPal, Skrill, Neteller, and Payz.
In the payment industry, Paysafe competes primarily with popular online payment methods, as well as credit cards like Visa and Mastercard, prepaid cards, and direct bank transfers like Giropay and Sofortüberweisung. The 2021 stock market performance of these cross-border payments companies is yet to be determined.
Bill Foley, vice chairman of FIS and owner of the Vegas Golden Knights hockey team, owns Foley Trasimene Acquisition Corp II. The merger with Paysafe will bring the company back into the public competition in the cross-border payments industry, potentially positioning it to challenge the market leaders once more.
As the world of digital payments continues to evolve, the return of Paysafe to the cross-border payments sector is an exciting development to watch. The company's new public status will undoubtedly influence its strategic decisions and its impact on the industry in the coming years.
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