- Legal States
Julie Moraine August 23, 2022 3 min read
Paysafe’s eCard Targets Underserved Population in Argentina
Specialized payments platform provider Paysafe announced today that it has entered Argentina bringing its prepaid online payment solution paysafecard to the largely underserved population in the Latin American country.
Near Future Growth Potential
The launch of Paysafe’s market-leading eCash payment solution in Argentina marked another step for the London-based payment provider in its quest to become the leading payment operator in Latin America by targeting markets where the population is largely underserved in terms of payments.
Commenting on the announcement, Paysafe’s president, Digital Wallets, Chirag Patel outlined the business opportunity presented by the market in Argentina “where eCommerce and online financial services are growing rapidly while the population remains underserved in terms of cards.”
“We see great potential here to help our international merchant partners provide the right payment options for their customers and make more transactions,” added Patel.
The paysafecard solution entry in Argentina will directly address the growing need for cash-based online payments, providing inclusion for people who do not have a credit card who according to official statistics comprise 76% of the population, as well as for those who do not have a deposit account estimated to be around 20% of the total.
The high number of Argentinian people who remain underserved in terms of card payments, together with the high level of internet penetration and smartphone penetration, 80% and 75%, respectively, and the projected growth rate of eCommerce in the country from 58.6% in 2022 to 61.9% in 2025, provide the ideal business environment for Paysafe’s paysafecard eCard solution to occupy this niche and establish its presence.
In addition to eCommerce, online gaming, social media and entertainment will also provide Paysafe with growth potential as its paysafecard solution will allow Argentinians to make secure payments online without needing to provide bank account or credit card information.
Affirming Latin American Presence
The launch of Paysafe’s eCard payment solution in Argentina followed the acquisitions of PagoEffectivo and Safety Pay, both announced in August last year.
The deal with the Peruvian-based market-leading alternative payments platform provider PagoEffectivo was completed in September 2021, while the $441 million all-cash transaction for open banking and eCash solutions platform provider Safety Pay closed in January 2022, and both acquisitions opened further scaling and cross-selling opportunities for Paysafe in the Latin American region.
Outside of Latin America, Paysafe recently launched its Skrill digital wallet solution in Arkansas in partnership with the Quapaw Nation and the tribe’s mobile betting brand BetSaracen Sportsbook to facilitate fund deposits and withdrawals for its customers.