Contributor, Benzinga
October 15, 2021
$14.30
-0.10[-0.69%]
Last update: 6:26PM (Delayed 15-Minutes)
Get Real Time Here
Open14.430Close14.530Vol / Avg.224.776K / 481.230KMkt Cap881.633MDay Range14.166 - 14.63552 Wk Range9.250 - 24.250

Paysafe (NYSE: PSFE), formerly known as Optimal Payments PLC, is an online payments company that allows customers to make payments without the use of a bank account or credit card information. 

With operations based in the Isle of Man and regulated in the United Kingdom, it is authorized by the Financial Conduct Authority. The company began trading on the New York Stock Exchange (NYSE) after agreeing to merge with special purpose acquisitions company (SPAC) Foley Trasimene Acquisition Corp, in a deal worth $9 billion.

PSFE Stock Price

$14.30
-0.10[-0.69%]
Last update: 6:26PM (Delayed 15-Minutes)
Get Real Time Here
Open14.430Close14.530Vol / Avg.224.776K / 481.230KMkt Cap881.633MDay Range14.166 - 14.63552 Wk Range9.250 - 24.250

Paysafe’s shares have struggled this past year, falling 53.38% year to date after reaching highs of $19.57 on January 25, 2021. In addition, the company’s stock took a significant hit on August 16, losing 15.49% of its share price after reporting second-quarter results that missed Wall Street's expectations on its forward-looking guidance.

The market cap for Paysafe is currently at $5.09 billion.

A key competitor of PSFE includes Square (NYSE: SQ), a digital payments company currently valued at a market cap of $110.13 billion. Square has gained 9.58% year to date, adding to a strong surge in its share price in 2020.

PSFE Stock Forecast

Paysafe shares in the last 3 months have tumbled 38.89%, but does this present an opportunity to buy at the dip?

In recent months, the company has partnered with Bunq to provide cash services, but that action hardly had an impact on its share price despite the company’s growth. Furthermore, on September 30, Paysafe announced a partnership with Fubo Gaming (NYSE: FUBO), plugging into PSFE’s credit and debit payments. Since the announcement, the PSFE’s shares have fallen almost 8.5%.

Recent second-quarter earnings represent an improvement for the company compared to 2020. Revenue increased 13%, EBITDA increased 8% and strong momentum in North American iGaming compared to the same period in 2020 represented a significant improvement for the company. 

With Covid-19, online payments have soared, as represented across the market, although as people begin to come out of lockdowns, in-person shopping will creep back towards pre-Covid levels. The reopening has impacted the market and possibly, Paysafe’s numbers.

PSFE Stock News

Several announcements have made the news for Paysafe in recent weeks, including:

  • A partnership with Fubo Gaming is expected to commence in Q4, allowing Fubo to tap into Paysafe for credit and debit card payments, the Skrill USA digital wallet and the Paysafecash eCash solutions.
  • Paysafe partnered with Shelby Financial to safeguard U.S. airline ticket payments for customers as the travel industry begins to stabilize.
  • Another partnership includes global gaming solutions provider INTRALOT (OTCMKTS: IRLTF) , which has integrated Paysafe into its online sports betting platform.

As previously stated, the company released second-quarter earnings with revenue of $384.3 million and net income attributable to the company of $6.6 million, compared to a net loss of $15.9 million in the same period of 2020. However, guidance for the third quarter missed expectations with expected revenue between $360 million and $375 million despite analysts predicting $384.4 million.

Paysafe plans to announce its third-quarter earnings on November 15, 2021. Adding Paysafe to your watchlist allows you to keep up to date with the latest Paysafe news. 

How to Buy PSFE Stock  

Not all brokers carry Paysafe, but if your current broker does, all you need to do is search for PSFE on the platform, open a trade ticket, fill in the details and click submit or buy to acquire shares in Paysafe. 

However, if your broker does not allow you to buy PSFE shares, or you don’t yet have a brokerage account, then here’s what you need to do.

Find a brokerage.

A broker acts as the intermediary between you and the stock exchange (in this case, the New York Stock Exchange). The customer places an order via their broker to buy a stock, and the broker carries out those instructions. If you decide to purchase shares in PSFE, you instruct your broker to buy the number of shares you request at the price you set, and it carries out those instructions. 

In return, the broker charges you a fee for its services. The fee varies depending on the broker. Therefore, it is vital to research costs and other aspects before setting up an account.

Decide how many shares you want to buy.

Once you have chosen a broker, you need to fund your account and decide how many shares to buy. Take into account the amount of risk you want to take and the percentage of your account attributed to PSFE. 

Starting with a small investment and adding consistently over time is a strategy used by many investors. However, before you make your purchase, consider how you enter the market. 

Choose your order type.

This stage requires you to decide on how your position is executed. Different order types exist, but the primary 2 you need to know are market and limit orders. 

Market orders mean you acquire the shares at a price dictated by the market. Or, in other words, you buy at the current market price. Therefore, using market orders results in a high chance your order will be filled. 

Limit orders mean that the price you buy the stock at is decided by you. You can determine what price you buy the shares at, but you face the risk that the order won’t be filled if the price doesn’t hit your predetermined level. 

Buy the shares.

After you have completed all the necessary steps to put you in a position to buy the shares, all that is left to do is just that — buy the shares. Once you have opened the trade ticket and completed the required fields, the last thing to do is click buy. Once completed, you can monitor the stock and your other positions by navigating to the correct tab on your brokerage platform.

Best Online Stock Brokers for PSFE Stock

Paysafe is listed on the NYSE, and most brokers are likely to offer PSFE as a tradeable asset in its platform. However, before you sign up with a broker, it is important to double-check. Below is a table showing you the best online stock brokers for Paysafe.

PSFE on Benzing Pro

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Screenshot taken from Benzinga Pro on 10-10-2021

Paysafe’s stock price has been in a bit of a rut since its shares were listed on the NYSE, falling over 53% for the year to date.

However, looking at the relative strength index (RSI) on the daily chart, it is approaching an interesting level. It has been hovering just above the 30 level in recent weeks, failing to fall into oversold territory on a few occasions. Therefore, a move below, coinciding with traders anticipating a positive third quarter earnings report, could be a positive sign for the company’s shares.

If that were to happen, one of its major hurdles would be getting past the crucial 50-day moving average, which it has stayed below and adhered to since June.  

The Paysafe Brand is Growing

Paysafe has been building new partnerships in recent months, expanding its brand. The company offers over 190,000 payment points in 29 countries, and it will be important to watch out for further partnerships. 

With Paysafe continuing to increase its presence in the online payments industry, it will be interesting to see how it performed in the third quarter when it releases its results on November 3.

With its stock price currently at lows, a positive earnings report could see a significant shift in Paysafe’s share price direction.

Frequently Asked Questions

Q

Is Paysafe safe?

A

Paying online with Paysafe is secure, as there is no personal data or bank information needed, but you must protect your Paysafecard codes to prevent unpleasant surprises.

Q

What is Paysafe?

A

Paysafe is a multinational online payments company offering prepaid payment methods that allow customers to make payments online. It also works through mergers and acquisitions of companies such as Neteller, Skrill and Paysafecash.

About Sam Boughedda, Stock Market Analyst

He is an expert in the following spaces: stock market news writing, analysis, and research.