Specialized payments platform Paysafe (NYSE:PSFE) announces that it has signed a definitive agreement to acquire German fintech company, viafintech, in an all-cash transaction.

viafintech, known under the brands of Barzahlen/viacash and viacash, offers the largest, bank independent, payments infrastructure in the DACH region, allowing a popular alternative to the traditional banking structure. For Paysafe, this latest acquisition not only boosts its growth opportunities in Germany, a critical market for its international merchants, it also creates revenue-generating opportunities to cross-sell viafintech’s alternative banking and payments solutions to its merchants around the world.

viafintech was founded in 2011 and integrates with digital banking apps to offer an innovative “mobile ATM” concept which enables consumers to make deposits or withdraw cash from their digital bank accounts at a nearby retail store using a barcode; something that is becoming increasingly popular in the region as bricks and mortar bank branches close and fast-growing challenger banks and digital wallets disrupt the market.

viafintech solutions are also used widely for bill payments and credit payouts, as well as for online shopping in general, supporting millions of consumers in the region who don’t have bank accounts, or who simply prefer the heightened security of using eCash to pay online.

Headquartered in Germany, where it has a market leading position, it also has a presence in an additional five European countries with plans to expand further. It operates via a network of 20,000 points of sale with over 20 well-known retail partners, and also has deep relationships in the banking, bill payments and eCommerce industries.

The combination of viafintech’s established banking framework and market leadership in Germany and elsewhere in Europe, together with Paysafe’s diverse payments portfolio and international merchant base, is expected to create compelling growth opportunities for each organisation, both within Europe and beyond.

As part of the deal, the viafintech team, including viafintech’s managing directors, Sebastian Seifert, Achim Bönsch and Andreas Veller, will become part of Paysafe’s expanding eCash and open banking solutions’ team which is headed up by Paysafe eCash CEO, Udo Müller.

This latest acquisition builds on Paysafe’s recent Latin American acquisition agreements with PagoEfectivo and SafetyPay and allows Paysafe to solidify its position as a market leader for eCash and open banking solutions where multiple payments players are competing to gain a stronger foothold in the emerging open banking ecosystem and the provision of alternative payment methods (APMs).

On completion of the three acquisitions, the Paysafe eCash business will be able to offer eCash and open banking solutions in over 60 countries with over one million distribution points.

Following the sale of their shares to Paysafe, viafintech’s majority shareholder – Glory Ltd., a global leader in cash technology solutions – will enter into a new strategic partnership with Paysafe. The two companies have signed a referral agreement that enables Glory to offer paysafecard, one of Paysafe’s leading eCash solutions, as a form of payment within its in-store payments kiosks, and, in turn, for Paysafe to offer Glory’s cash technology solutions to its merchants around the world.

Meanwhile, GRENKE BANK AG, which has been providing viafintech’s German bank license and proven regulatory framework since 2017, as well as being a shareholder of the company, will continue to provide the same banking service going forward.

The transaction is expected to close over the coming months, subject to customary closing conditions and in accordance with applicable laws and regulations. Until that time, the two organisations will continue to operate independently.