Paysafe Forecasts Annual Revenue of $1.7 Billion

Impressive growth forecast is driven in part by growing demand for paysafecard deposits on online casinos

In an impressive financial turnaround, Paysafe’s recent quarterly financial results offered an annual revenue forecast of $1.7 billion for the payment provider for 2024, partly fueled by the rising popularity of Paysafecard deposits with online casinos. 

Paysafe’s Q1 financial results revealed first quarter net income of $3.1 million, a marked improvement from the $3.8 million loss it reported in the first quarter of last year. Bruce Lowthers, the fintech company’s CEO, attributed the impressive year-on-year turnaround to Paysafe’s white-label wallet strategy, its expanded sales team, and its renewed focus on enabling casinos and iGaming sites to allow deposits via Paysafe, particularly in the USA.

The company’s revenue for the first quarter grew by 8% year-over-year, reaching $417.7 million, while its adjusted EBITDA stood at $111.9 million, reflecting a 4% increase. This growth is primarily driven by the expanded use of Paysafecard, which is becoming an increasingly popular payment method for online gambling sites.

Paysafe’s Merchant Solutions segment saw an 11% rise in revenue due to substantial growth in e-commerce and small to medium-sized businesses. The Digital Wallets segment also experienced growth, fueled by the gambling sector and enhanced product engagement.

Strategic Partnerships Expected to Fuel Paysafe’s Growth

Bruce Lowthers highlighted the success of Paysafe’s strategic initiatives, including the expansion of its sales team and a new white-label wallet strategy through a partnership with Xsolla. These initiatives have significantly contributed to the company’s robust performance and optimistic growth prospects.

Paysafe’s financial outlook for 2024, with expected revenue between $1.688 billion and $1.712 billion and an adjusted EBITDA ranging from $473 million to $488 million, underscores its confidence in its sustained growth. The company’s strategic focus on the iGaming sector and its collaboration with major payment networks like Visa are expected to further drive its financial success.

Online Casinos Projected to Record CAGR of 11.7%

Highlighting Paysafe’s opportunities for growth, market projections for the global online gambling sector indicate that it will reach an annual value of $153.57 billion by 2030, at a compound annual growth rate (CAGR) of 11.7% over the next six years. 

This growth is driven by several key factors, including the increasing availability of free-play versions of online casino games and the adoption of advanced digital payment options.

Free-play versions of online casino games have proven to be a major draw for new users. These versions allow players to experience games without financial risk, which helps build trust and familiarity with online gambling platforms. This model also generates revenue through advertisements integrated within these free-play environments​.

At the same time, the growing availability of digital payment options, including blockchain-based solutions and digital wallet solutions like Paysafe, are removing friction, making it easier for players to deposit and withdraw funds. 

A significant portion of iGaming, approximately 75%, is already funded through digital payment methods such as Paysafe and cryptocurrencies​. As much as 40% of these payments are made via cryptocurrencies, reflecting their growing acceptance and convenience in the online gambling space​.

The combination of these payment innovations and the user-friendly nature of online casinos is contributing to the sector’s rapid expansion. This trend presents substantial growth opportunities for payment providers like Paysafe, which are well-positioned to capitalize on the increasing demand for secure, efficient, and versatile payment solutions in the iGaming industry​.

As the online gambling market continues to evolve, Paysafe’s strategic focus on enhancing its digital wallet capabilities and expanding its presence in the iGaming sector will likely drive sustained growth. The company’s ability to adapt to market trends and meet the needs of modern online gamblers positions it as a key player in the future of digital payments for online casinos.