Paysafe (NYSE:PSFE) made its debut on the New York Stock Exchange yesterday, and investors are starting to take notice. After completing its merger with Foley Trasimene Acquisition II, PSFE stock started trading independently. So with Paysafe gaining traction, what should you know now?
As a quick reminder, Foley Trasimene Acquisition II is a special purpose acquisition company that was trading under BFT stock. It brought Paysafe public through a reverse merger, and now PSFE stock is trading on its own.
With that in mind, here is what you need to know about Paysafe and PSFE stock:
- Foley Trasimene II came public in August 2020, and BFT stock began trading.
- The blank-check company raised $1.3 billion by offering 130 million units at $10 each.
- All along, Foley Trasimene II said it wanted to focus on financial or business services.
- This is because its founder, Bill Foley, is considered an expert in those fields. He holds leadership positions at Fidelity National (NYSE:FNF), Black Knight (NYSE:BKI) and Cannae.
- Paysafe and Foley Trasimene announced their merger in December 2020.
- Then, shareholders voted to approve the deal in March 2021, allowing PSFE to start trading.
- Foley now serves as the chairman of the board of the directors. Paysafe CEO Philip McHugh will continue to serve in his role.
- Investors should note that Paysafe is a global payments company.
- It currently processes $100 billion of payment volume through its platform.
- Specifically, Paysafe says it is a leader in global e-commerce and iGaming.
- Right now, as much as 75% of its revenue comes from e-commerce.
- Investors should also note that the company operates under the Paysafe brand as well as Neteller, Skrill and paysafecard.
- Paysafe previously traded on the London Stock Exchange until 2017.
- Then, Blackstone (NYSE:BX) and CVC Capital took it private. They remain majority shareholders.
The Paysafe SPAC Merger and PSFE Stock
So what else should you know about Paysafe? And what else makes PSFE stock stand out on its second day of trading?
One thing investors should play close attention to is the new role of iGaming. As McHugh put it, this is not the first time investors have had access to a publicly traded Paysafe. However, this time around, the company is linking itself to iGaming and sees real potential there. This is because many popular companies use Paysafe for their payments processing. Paysafe counts DraftKings (NASDAQ:DKNG) and Golden Nugget Online Gaming (NASDAQ:GNOG), among many others, as its customers.
Right now, we know that 75% of company revenue comes from e-commerce payments. However, Paysafe is leaning into iGaming, and that is something for investors to watch.
There are also recent headlines worth paying attention to. The first is that subsidiary brand Neteller just launched a loyalty program to encourage customers to pay with their Neteller digital wallets. This comes on the heels of a digital wallet announcement from Bakkt, and Paysafe says builds on its own past successes. Additionally, Moody’s upgraded Paysafe today to a stable, B1 rating.
Keep the Paysafe SPAC merger and PSFE stock on your radar here.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.