Great opportunity for our merchants to benefit from the fast-growing cash network in LATAM

12 2021 | NEWS

Through the purchase of the local brand "PagoEfectivo" and a definitive agreement to acquire "SafetyPay", paysafecard will become one of the leading players for alternative payment methods in Central and South America. This is how our merchants will benefit from the cash network in 11 additional countries.

paysafecard is reinforcing its focus on Latin America. In August 2021 the purchase of "PagoEfectivo" – first of two agreements – was already completed. The company was founded in Lima in 2009 and since then has strengthened its position as the market leader for eCash solutions and online banking payments in Peru and Ecuador. With its services millions of users in these two countries have an opportunity to shop online without needing to use a credit card. One click on the button "Pay with PagoEfectivo“ enables payments either via online banking or at one of more than 140,000 points of sale in Peru and Ecuador.


Alternative payment methods

For the Paysafe group, closing the deal is an important strategic step towards further growth in this particularly exciting region of the world for eCommerce, says Udo Müller, paysafecard's eCash CEO. “Alternative, cash-based payment methods have always been deeply rooted in South America and their use continues to grow rapidly. With "PagoEfectivo", we can count on a well-known regional brand whose team has built very good relationships with regional banks over the years."


Banks and eCommerce

The local banking institutions are generally an important factor for the development and growth of eCommerce in Latin America. There are several reasons for that. On the one hand, fewer credit cards are issued there in comparison to other regions of the world. In Mexico, the country with the population of roughly 130 million people, it is as low as 10%; in Peru, where almost 33 million people are living, it’s even lower – 9%. And even when credit cards are used, in Latin America they are usually only valid in the national currency and issued with very low credit limits. That does not offer a good starting point for online consumption. On the other hand, local payment methods also known as alternative payment methods (APMs), such as cash vouchers, bank transfers and e-wallets, have been developed and allow cash to play a much greater role for online trade. For merchants this is good news because this trend means more possibilities to grow and increase revenue also online.


eCommerce and its rapid growth

eCommerce in South America is currently growing more strongly than in almost any other part of the world. The "Shopify Future of Commerce Report" predicts a growth rate for Latin America of 20% for the next three years. In Asia, it is just 15.8%, in Africa 14.2%, while the global average is only 8.1%. Moreover, according to the AMI study of eCommerce in Latin America, cash-based payment methods will continue to grow: cash vouchers (eCash) by 31% and bank transfers by as much as 39%. Thanks to Paysafe’s acquisition of PagoEfectivo, a former subsidiary of Empresa Editora El Comercio S.A. (“Grupo El Comercio”), paysafecard’s merchants, especially from such industries like iGaming, travel, digital goods, and eCommerce, can look forward to offering new APMs and opening new opportunities on the huge market of Latin America where cash still has a strong position and the readiness of consumers to spend it online is high.


Ten new markets for international merchants

The second acquisition in the region is therefore a logical step to ensure access to even more markets for international merchants. In August 2021 the company signed a definitive agreement to acquire "SafetyPay", an eCommerce payment platform whose mission is to “enable millions of consumers to use alternative payment methods (APMs), most notably bank transfer and eCash solutions, to make online purchases.” Currently SafetyPay, which has been founded in 2007, operates in 11 Latin American countries in which it enables cash payments at over 180,000 points of sales. In addition, the company has a network of over 380 bank partnerships and over 20,000 points of sales on the European continent. Paysafe is looking forward to closing this acquisition in the near future.


The most important eCash player in Latin America

“Our international merchants will benefit enormously from the recent agreements, especially due to the significant extension of the APM network”, says Walter Tauchner, Senior Vice President Partner Management at paysafecard with confidence. “Internet penetration and the use of smartphones are growing very rapidly in Latin America, but bank accounts and cash play a much greater role in payments than in other markets”, he says. “Our goal is to become the most important player for eCash and online banking solutions in the entire region. With both agreements we are on the best path to achieve it and let our merchants open the door to many countries in Latin America.”

Another piece of good news for them is that the integration of the new interface for Latin America will not require any major effort. “They just need to contact our team, and within a few weeks they will be live with the new offers in all the countries once everything has been set up on our side,“ adds Tauchner.


Win new customers among un(der)banked consumers in the LATAM region. Benefit from the cash network in additional 11 countries. Contact the team and ask all questions you have about the integration and successful set up for your business.

With PagoEfectivo, we can now count on a well-known regional brand whose team has built up a very good relationship with the regional banks over the years."

Udo Müller


  • Mastercard AMI “The acceleration of financial inclusion during the COVID-19 pandemic: Bringing hidden opportunities to light”
  • AMI eCommerce in Latin America 2019-2023
  • Shopify Future of Commerce report, Americas Market Intelligence study and Cornerstone. (GroupM E-Commerce Forecast)
  • Visa