Paysafe (PAYS), previously known as Optimal Payments, kicks off trading on the main market today and expects to be considered for inclusion in the FTSE 250 index in March 2016.

Headed by Canadian payments entrepreneur Joel Leonoff, Optimal merged with Skrill earlier this year alongside a £451 million rights issue to form Paysafe, a business large enough to be included in the mid cap index.

‘Payments is a scale business and size matters,’ writes analyst Peter Roe at Tech Market View.

‘Paysafe, through its rapid expansion and progress in 2015 has significantly improved its prospects for the longer term.’

PAYS - Comparison Line Chart (Rebased to first)

As well as scale, the deal was also designed to reduce Paysafe's reliance on a key customer which represented 37% of revenue in 2014 and 29% in the six months to 30 June 2015.

Acquiring Skrill, which earns around 8% of its revenue from the same customer, will dilute the overall exposure to in the region of 20%.

The Europe-based customer, which is not named by the company, provides online gambling services into China.

There have been concerns over a crack-down on gambling by authorities in the country which has seen activity in offshore hub Macau seriously hit.

The slowdown saw revenue growth in the first half slide to 5% on an organic, constant currency basis according to analysis by Oakhall Advisors which is a paid adviser of the company.

Total revenue growth of 40.2% was mainly a result of the $210 million (£141 million) acquisition of NetBX, a California-based payment processing business, at the end of 2014.

In November, management sought to play down concerns over historical data breaches, saying the cyber attacks impacted a limited number of customers and appropriate remediation had been made.

Continuing investment in cyber security by the company should defend it against future threats, management said.

Shares in Paysafe trade 1.3% higher at 354p.

Issue Date: 23 Dec 2015