Paysafe, a payments service provider, has agreed to acquire iPayment, a US-based provider of payment and processing solutions for small and medium-sized businesses (SMB).
The acquisition is part of Paysafe’s previously stated investment strategy to expand its presence in North America in response to significant growth opportunities, particularly in the fast-growing SMB sector.
This latest US based investment builds on Paysafe’s acquisition in August 2017 of SMB payments provider, Merchant Choice Payment Solutions (“MCPS”), as well as its high-profile sponsorship of North America’s IndyCar series.
The latest acquisition of iPayment, which serves more than 137,000 merchants and processes annual volumes of over USD 28 billion, will establish Paysafe as a top 5 non-bank payment processor in the US.
The integration of iPayment with Paysafe will bring merchants, partners, consumers and platforms more product choice via an integrated payments platform which includes point of sale (POS) solutions, order ahead purchases and payments, as well as online payment products such as Paysafe’s prepaid solution, paysafecard.
The acquisition is expected to complete in Q2, 2018, pending final regulatory approvals. Until then, the two groups will continue to operate as independent organisations.