Merchants Eye — Payments & Ecommerce News

Paysafe Partners with FastSpring to Launch Global Merchant of Record Solution for Digital Goods

By Lauren Towner · 26 August 2026

In brief: Paysafe has launched a Merchant of Record solution via a partnership with FastSpring to automate global tax, compliance, and localized payments for digital-first businesses like AI and gaming.

Key facts
Annual Transaction Volume$167 billion (2025)
Primary Target SectorsGaming, Software, AI, Apps, Digital Content
Core FeaturesTax remittance, payment localization, chargeback management
Press Release: Paysafe Partners with FastSpring to Launch Global Merchant of Record Solution for Digital Goods | Featured Image by FF News

Paysafe has launched a new Merchant of Record (MoR) solution in partnership with FastSpring, targeting the high-growth digital goods sector. For fintech professionals, this move signals a shift toward integrated compliance and tax management services, allowing software and gaming firms to bypass the heavy operational lifting of cross-border regulatory adherence.

What was announced

The partnership introduces a co-branded Merchant of Record solution designed specifically for businesses dealing in Games, Apps, AI, Software, and various digital goods. By utilizing FastSpring’s established infrastructure, Paysafe now offers a service where the provider acts as the legal seller of record for a transaction. This shift in liability means the solution handles the calculation, collection, and remittance of taxes across different jurisdictions, alongside managing regional compliance and chargeback disputes.

The service is initially focused on digital-first sectors, providing these businesses with a way to localize payments and manage administrative requirements without establishing local entities in every market. The integration combines Paysafe’s international payment reach with FastSpring’s specialized MoR capabilities, aiming to reduce the friction typically associated with global commerce. By offloading these backend responsibilities, digital merchants can focus resources on product development and customer acquisition rather than the complexities of international tax law and payment regulations.

"By combining FastSpring's merchant of record expertise with Paysafe's global payments capabilities, we're helping businesses scale internationally more quickly and efficiently,"

David Nachman, CEO at FastSpring.

The companies involved

Paysafe (NYSE: PSFE) is a global payments platform that has established a significant footprint in the digital commerce space. The company operates a diverse portfolio of payment solutions, including the well-known digital wallet Skrill and the prepaid payment method Paysafecard. Its market position is defined by its ability to bridge the gap between traditional banking and alternative payment methods, particularly in sectors like iGaming and digital entertainment.

FastSpring is a specialized provider of merchant of record services, focusing on the global distribution of software and digital products. The company provides the underlying infrastructure that allows businesses to sell globally while FastSpring assumes the financial and legal responsibilities of the transaction. This includes managing the complexities of global VAT and sales tax, which varies significantly by region. Together, the two companies are positioning this joint solution as a comprehensive toolkit for digital-native businesses looking to expand their geographic footprint without the proportional increase in administrative overhead.

What FF News has reported before

FF News has tracked Paysafe’s active expansion throughout August 2026. The company recently sought to deepen its ties with the gaming community through the Paysafe Launches Global Gaming Arena to Connect 19 Million Players with Developers. This followed a strategic move into the sports and entertainment sector where Paysafe Becomes Envision Racing Title Partner to Drive Formula E Fan Engagement. Additionally, the firm has been strengthening its consumer-facing products in Europe, as seen when Paysafe Launches PaysafeWallet in Poland to Empower Digital-Native Consumers.

What this means

This announcement moves the needle by lowering the barrier to entry for small-to-medium AI and software firms that previously lacked the legal resources to navigate global tax nexus laws. By offering a Merchant of Record model, Paysafe is directly challenging traditional payment gateways that only provide the "plumbing" without the "protection." The pressure is now on pure-play payment processors to decide if they will remain as utility providers or evolve into full-service compliance partners. The central question for the sector is whether the MoR model will become the default expectation for the "passion economy" and digital creators who prioritize speed-to-market over maintaining their own complex treasury and tax departments.

Frequently asked questions

What is a Merchant of Record (MoR) solution?

A Merchant of Record (MoR) is a legal entity that sells goods or services to a customer on behalf of a business. In this partnership, the MoR solution handles the complexities of global commerce, including tax collection, remittance, payment localization, and regulatory compliance, allowing the original business to focus on product development.

How does the Paysafe and FastSpring partnership benefit software companies?

The partnership combines Paysafe’s global payment reach with FastSpring’s MoR infrastructure. This allows software and AI companies to sell internationally immediately without managing multiple tax registrations or local payment regulations, significantly reducing operational complexity and accelerating time-to-market.

Which industries can use the new Paysafe MoR solution?

The solution is specifically designed for digital-first sectors. This includes AI developers, software providers, video game studios, mobile app creators, and other digital content businesses looking to scale their sales across international borders efficiently.

About the companies

Skrill

Part of Paysafe · Website · 6 stories on FF News since 2026

Previously on FF News:

FastSpring

Part of Accel-KKR · Website · 4 stories on FF News since 2025

Previously on FF News:

Paysafecard

Part of Paysafe · Website · 4 stories on FF News since 2026

Previously on FF News:

Companies in this story: Skrill, FastSpring, Paysafecard, Paysafe

People in this story: David Nachman, Bob Legters

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