Philip McHugh, Paysafe CEO: Pioneering regulated, product-driven growth in global payments

Summary: Paysafe is a leading global payments platform built from the integration of Skrill, Neteller and paysafecard into a modular platform that serves merchants, platforms, marketplaces, SaaS providers and fintech partners. The company operates under regulated e-money and payments licenses across multiple jurisdictions, leveraging a bank partnership and agent model to issue cards and wallets, support IBANs and account-based rails, and deliver SEPA, PIS/AIS, FX, KYC/KYB and AML tooling at merchant scale. The executive leadership, led by Philip McHugh as CEO, focuses on expanding the Paysafe Platform’s capabilities, accelerating onboarding, and maintaining a compliance-first approach while competing with major PSPs and card networks. The roadmap emphasizes embedded finance, open banking, cross-border scalability, and expanded coverage for SEPA Instant, acquiring, processing and card issuing, along with a continued emphasis on fraud prevention and regulatory alignment. This interview explores the executive’s role, regulatory posture, products, target clients, risk framework, technical stack, pricing philosophy, competitive positioning, and the 12–24 month horizon for Paysafe.

Company snapshot: Paysafe, its products, history and future trajectory

Paysafe provides a multi-rail payments platform designed to help businesses monetize and scale payments with a product suite that includes issuing and acquiring capabilities, card programs, digital wallets, IBAN/account rails, FX and cross-border settlement, KYC/KYB and AML tooling, fraud protection, and embedded finance features. The business model centers on offering modular tools that partners can assemble into a payment stack tailored to marketplaces, SaaS platforms, and fintechs, including crypto service providers and regulated VASPs where permitted by jurisdiction. Paysafe emphasizes a compliance-first approach and scalable technology to support rapid onboarding, high-volume processing, and secure settlement across global rails. The company’s future is oriented toward deepening embedded finance capabilities, expanding SEPA Instant reach and routing efficiency, broadening Open Banking compatibility, and maintaining a robust risk framework that can handle high-risk verticals while preserving regulatory alignment and consumer protections. The leadership aims to keep Paysafe competitive against global incumbents by delivering faster go-to-market, stronger developer experiences, and transparent pricing, while expanding geographic reach and product breadth.

The interview

Q1: What is Paysafe’s current strategic focus under your leadership?

We are accelerating the Paysafe Platform’s modularity to help merchants, platforms and fintech partners embed payments and financial services into their products. The focus is on scalable issuing, acquiring, wallet capabilities, and account rails (including IBAN-like functionality via partner networks), augmenting SEPA Inst routing where available, and delivering strong fraud/AML tooling, KYB/KYC automation, and Open Banking readiness. We prioritize customer-centric product design, robust regulatory compliance, and predictable cost structures that enable our customers to price and scale confidently.

Q2: Can you describe Paysafe’s regulatory posture and licenses in simple terms?

Paysafe operates as an e-money institution (EMI) and payment services provider in multiple jurisdictions, leveraging licensed entities and partner banks to issue accounts, provide wallets, and process payments. We use an agent model to extend market reach where appropriate and maintain strict compliance with applicable regulations, AML/KYC rules, and data protection standards. We actively monitor regulatory developments in the EU and UK, including upcoming frameworks, to align our product roadmap and risk controls with evolving requirements while ensuring fast onboarding and secure transactions for customers.

Q3: What are Paysafe’s core products, and how do they fit into a customer’s value chain?

Key offerings include issuing and acquiring capabilities, digital wallets, card programs (virtual and physical), multi-currency wallets, and FX with competitive spreads. We support IBAN/account rails via partnerships, SEPA Instant routing where supported, and open banking-enabled PIS/AIS flows. Our KYB/KYC and AML tooling are embedded into onboarding and ongoing monitoring, and fraud protection is integrated across sources of payment, card schemes, and wallets. The platform also covers onboarding APIs, developer dashboards, sandbox environments, and dashboards that give customers visibility into transactions, settlements, and risk signals.

Q4: Who are Paysafe’s target clients and what use cases are most common?

Our target clients include marketplaces, SaaS platforms, fintechs, and platforms that require embedded payments, card issuance, and wallet or IBAN-style rails. We also support crypto-related VASPs and, in jurisdictions where permitted, regulated adult and affiliate programs. Common use cases include multi-merchant marketplaces needing flexible acquiring, platform payouts and settlements, embedded issuing for branded cards, and wallets with FX and cross-border capabilities for global users. We emphasize configurable workflows, seamless onboarding for partners, and compliance-ready capabilities that scale with business growth.

Q5: What is your risk appetite and how is compliance embedded in the business model?

We maintain a balanced risk appetite that supports growth while protecting customers and the ecosystem. Our approach combines risk-based KYB/KYC, ongoing transaction screening, customer due diligence, and event-driven monitoring to adapt to vertical risk profiles. We emphasize governance, clear ownership of risk, and rigorous controls around KYC/AML, sanctions screening, and data protection. Our compliance program is designed to enable onboarding speed for legitimate businesses while ensuring robust checks for high-risk segments and cross-border activity.

Q6: How does Paysafe approach SEPA Instant and routing logic?

We support SEPA Instant where available in our European reach and route flows through the fastest eligible rails, with fallback options to standard SCT transfers when Inst is not supported. Our routing decisions consider currency, beneficiary banks, and timing requirements, optimizing for speed and cost. We also monitor evolving market infrastructure to ensure we offer the most efficient rails for a given corridor and customer need.

Q7: What Open Banking capabilities does Paysafe offer?

We support PSD2-style Open Banking connections to enable AIS (account information) and PIS (payments initiation) flows where permitted. This includes developer-friendly APIs, sandbox environments, and dashboard visibility for merchants to manage and reconcile Open Banking-enabled payments. Our approach emphasizes broad bank coverage, robust consent management, and secure data handling to enable trusted Pay-by-Bank experiences within the Paysafe Platform.

Q8: What is Paysafe’s stance on acquiring licenses and merchant eligibility?

Paysafe maintains acquiring capabilities through licensed entities and partner arrangements designed to cover a wide range of merchants and industries. We employ comprehensive risk assessment, merchant onboarding controls, and transaction monitoring to support acquiring for both traditional and high-risk verticals, where permissible by jurisdiction. Our model is built to scale with merchant needs, while maintaining compliance with card schemes and local regulatory requirements.

Q9: What onboarding timelines and documentation are typical for new partners?

Onboarding timelines vary by jurisdiction and business type but typically involve completing corporate documentation, beneficial ownership disclosures, KYC/KYB checks, anti-fraud and AML screening, data protection attestations, and technical integration planning. For most standard merchants, initial onboarding can take from a few days to a few weeks, with longer lead times for highly regulated or high-risk segments. We provide a sandbox and clear milestones to help partners manage expectations and accelerate go-to-market.

Q10: What does Paysafe’s technical stack look like?

We offer RESTful APIs, Webhooks, and a developer portal with sandbox environments and extensive documentation. Our dashboards provide real-time visibility into payments, settlements, and risk signals. The architecture emphasizes modularity, high scalability, and security, with event-driven processing for real-time reconciliation and monitoring. We also provide developer-friendly tools to test, validate, and deploy new payment workflows quickly.

Q11: How does Paysafe price its services at a high level?

Pricing is built on a combination of per-transaction fees, scheme/interchange costs, and cross-border FX spreads, with volume-based discounts and custom quotes for large or high-volume customers. We aim for a transparent, predictable structure that aligns with merchant growth and the complexity of use cases (issuance, acquiring, wallet management, Open Banking, etc.). Specific rates depend on risk, jurisdiction, processing method, and vertical; we emphasize clear pricing and communication for partners.

Q12: How does Paysafe differentiate itself from Stripe, Adyen, Banking Circle, Swan, and Lemonway?

Key differentiators include a broad issuing capability and wallet/IBAN-rail approach, established cross-border payout capabilities, and a robust compliance framework designed to support high-growth platforms and regulated verticals. We emphasize strong fraud and AML tooling, embedded finance capabilities, and developer-friendly APIs that enable rapid integration. Our network, product breadth (including card issuing and acquiring), and routing options for SEPA Instant and Open Banking provide a compelling combination for platforms seeking a single, compliant payments stack.

Q13: What are the 12–24 month roadmap highlights?

Major themes include expanding issuer and acquiring capabilities in additional markets, deepening SEPA Instant coverage and routing optimization, expanding IBAN/account-rail offerings via banking partners, advancing Open Banking integrations, and enhancing embedded finance features (e.g., more configurable wallets, merchant cash flow tools, and spend controls). We will invest in fraud/AML tooling, risk analytics, and a more unified developer experience across products to accelerate time-to-market for customers.

Q14: What is Paysafe’s long-term vision for the platform?

Our long-term vision is to be the trusted, end-to-end payments and embedded-finance platform of choice for platforms and fintechs—providing issuing, acquiring, wallets, rails, FX, Open Banking, and risk/AML capabilities in a compliant, scalable, and developer-friendly package. We aim to enable partners to launch new monetization models quickly, expand into new markets, and manage risk and compliance in a predictable way as regulations evolve.

Q15: How does MiCA factor into Paysafe’s EU strategy?

MiCA represents an important regulatory trajectory for crypto-asset activities and related services in the EU. Paysafe tracks MiCA developments and aligns its EU operations to ensure compliance where crypto-related services are offered or contemplated through our platforms. We engage with EU regulators and industry bodies to understand implications for licensing, consumer protection, and market access, adapting product and governance models accordingly.

Q16: How does Paysafe handle crypto-related services for regulated VASPs or similar use cases?

Crypto-related services are approached with strict compliance and risk controls, including KYC/KYB, transaction monitoring, and sanctions screening. We assess regulatory allowances in each jurisdiction, partner with licensed entities where appropriate, and ensure that any crypto-related activity complies with local laws and industry standards. Our stance prioritizes consumer protection, anti-money-laundering measures, and regulatory alignment.

Q17: How are fraud and AML tools integrated into the platform?

Fraud prevention and AML are embedded across onboarding, transaction processing, and settlement workflows. We employ multi-layered checks, machine-learning-driven risk scoring, real-time transaction monitoring, and escalations for high-risk events. Our tooling supports adaptive risk controls, anomaly detection, and ongoing due diligence to minimize fraud while maintaining smooth user experiences for legitimate customers.

Q18: How do you support onboarding for marketplaces and SaaS platforms?

We provide API-driven onboarding workflows, automated KYB/KYC checks, and flexible merchant profiles to align with marketplace and SaaS business models. Our platform supports split settlements, payer/payee management, and bespoke payout rules, ensuring merchants can automate vendor payments, supplier settlements, and merchant-to-merchant transfers while meeting regulatory requirements.

Q19: What is the status of SEPA Instant coverage and how does routing work in practice?

SEPA Instant coverage is extended to markets where the rails are live, with routing logic that prioritizes instant transfers for eligible corridors. When Inst is unavailable or inapplicable, we fall back to SCT Instant where possible or standard SCT transfers, depending on currencies and beneficiary banks. The goal is to deliver the fastest possible settlement while preserving reliability and cost-efficiency.

Q20: How is Open Banking evolving at Paysafe?

Open Banking capabilities continue to expand with broader AIS/PIS integration, multi-bank coverage, and enhanced user consent management. We focus on developer-friendly APIs, secure data exchange, and compliance with PSD2 in applicable markets, enabling customers to initiate payments and access account information through a consistent Paysafe experience.

Q21: Can you share a practical case study or example of how a partner uses Paysafe effectively?

A typical pattern is a global marketplace leveraging Paysafe for seller payouts, buyer payments, and an embedded card program. The merchant uses our issuing to provide branded cards to sellers, acquiring to accept payments from buyers, SEPA Instant for fast cross-border settlements, and Open Banking to offer funds-in and funds-out flows. Our risk tooling ensures onboarding and ongoing monitoring meet regulatory requirements, while the API-driven integration enables rapid time-to-market and a unified developer experience.

Q22: Any closing thoughts for potential partners evaluating Paysafe?

Partners should evaluate not just the breadth of capabilities but the depth of regulatory alignment, risk management maturity, and the developer experience. Paysafe is committed to providing an integrated, compliant, and scalable payments stack that fits into modern platform architectures, supports high-growth scenarios, and helps partners differentiate with embedded finance and efficient settlement capabilities.

FAQ

Licensing and regulatory

Q: What licenses does Paysafe hold and where? A: Paysafe operates as an EMI/PSP in multiple jurisdictions, leveraging licensed entities and banking partners to issue accounts, wallets, and process payments while maintaining regulatory compliance across regions.

SEPA Instant and IBANs

Q: Does Paysafe support SEPA Instant and issue IBANs? A: We support SEPA Instant where available and operate account-rail capabilities via banking partnerships, enabling fast, cross-border euro transfers. IBAN-like rails are provided through our partner network as part of our issuer/treasury model for eligible use cases.

Onboarding and documentation

Q: What documents are typically required to onboard a new merchant? A: Corporate documents, beneficial ownership information, KYC/KYB data, AML screening, data-protection attestations, and technical integration details. Timelines vary by jurisdiction and risk level.

Open Banking

Q: What Open Banking capabilities does Paysafe offer? A: We provide AIS and PIS capabilities via PSD2-aligned APIs, with sandbox testing, consent management, and multi-bank connectivity to support payments initiation and data access where permitted by regulation.

Acquiring and cards

Q: How does acquiring work with Paysafe, and what about card programs? A: We provide acquiring through licensed structures with risk controls and partner banks, plus card issuing for branded virtual/physical cards, integrated into the platform for payments, payouts, and merchant flows.

Pricing and open terms

Q: What should a potential partner expect in pricing? A: Pricing combines per-transaction fees, scheme/interchange costs, and FX spreads, with volume-based discounts. Exact pricing depends on region, risk profile, vertical, and integration scope.