Paysafe Launches Safeguarding Model for the Travel Industry Globally
July 08 2021 - 4:00AM
Business Wire
Leading specialized payments platform also outlines its vision
for the future of payments risk management in the travel sector in
its latest whitepaper
Paysafe (NYSE: PSFE), a leading specialized payments platform,
today announces the global launch of its safeguarding solution for
the travel industry. The new solution eliminates the need for
travel operators or other travel businesses that accept payments
from consumers to offer cash collateral to their acquirer to offset
the risk of non-delivery of services. Instead, consumer payments
are held by a third party, and released immediately and in full to
the travel business upon terms agreed by the company and Paysafe
being met.
The safeguarding model has been created using Paysafe’s
extensive experience in the travel industry to build a new risk
management mechanism that benefits both travel companies and their
acquirers. It has been developed in partnership with
industry-specialized trust solution partners and uses Paysafe’s
payment technology and sophisticated data management capabilities
to immediately reconcile when funds should be released to the
merchant.
Currently, holding cash reserves as collateral is industry
standard, as acquirers manage the risk generated by consumers
making high value transactions well in advance of delivery of the
service. As the value of cash being withheld can often fluctuate,
this has created numerous problems for travel businesses, including
liquidity concerns and uncertainty.
Having identified the need for the industry to move away from
traditional collateral-based risk management, Paysafe has been
rolling out and battle testing its services with a limited number
of partners in Europe. Following the COVID-19 crisis and the
challenges that travel companies have faced during this period, the
need for the travel industry to move away from payments
relationships built on cash collateral and rolling reserves has
grown, and the highly flexible and scalable solution from Paysafe
helps to support this shift.
Commenting on the launch, Paulette Rowe, CEO of Integrated &
Ecommerce Solutions at Paysafe, said: “It is no secret that the
travel industry has been heavily impacted by COVID-19. Many travel
companies have struggled to find a payments partner that is willing
to work with them on agreeable terms during the pandemic, as
acquirers simply haven’t been prepared to accept the risk profiles
the industry is generating. At Paysafe, we’ve leaned on our deep
understanding of the sector to evolve our safeguarding solution to
enable us to work more closely with our partners in a way that is
preferable to both parties. Stress testing the model throughout the
crisis puts us in the best position to support the industry in its
period of recovery, and to thrive in the long term.”
She added: “In addition to supporting travel businesses directly
as they recover and grow following the pandemic, Paysafe’s
safeguarding solution benefits the consumer as their payments are
completely protected against non-delivery of service. Consumer
trust in the industry will be a critical component of its revival
and this isn’t guaranteed in many existing circumstances.”
This week Paysafe has also published a whitepaper for the
industry outlining how the safeguarding model benefits both the
travel industry and the acquirers it works with. Safeguarding
the future of travel: Why it is time to rethink payments and
liquidity in the travel industry details why the industry had
already reached a crossroads with its payment solutions prior to
the pandemic and what has been learned from the crisis. It also
offers an in-depth explanation of how the safeguarding model works
in practice, and the benefits of the new type of relationship for
both travel businesses and the acquirer.
To download the report, visit: Safeguarding the future of travel: Why it is time to
rethink payments and liquidity in the travel industry is available
to download now.
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About Paysafe Limited
Paysafe Limited (“Paysafe”) (NYSE: PSFE) (PSFE.WS) is a leading
specialized payments platform. Its core purpose is to enable
businesses and consumers to connect and transact seamlessly through
industry-leading capabilities in payment processing, digital
wallet, and online cash solutions. With over 20 years of online
payment experience, an annualized transactional volume of US $92
billion in 2020, and approximately 3,400 employees located in 12+
global locations, Paysafe connects businesses and consumers across
70 payment types in over 40 currencies around the world. Delivered
through an integrated platform, Paysafe solutions are geared toward
mobile-initiated transactions, real-time analytics and the
convergence between brick-and-mortar and online payments. Further
information is available at www.paysafe.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20210708005335/en/
Anna Howard, Director of Communications, Europe and Asia,
Paysafe Anna.Howard@Paysafe.com Phone: +44-2038908975 Nick Say,
Manager of Communications, North America, Paysafe
Nick.Say@Paysafe.com Phone: +1-514 452-8747
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