Company: PSEWF
Filing Date: 2025-03-04
Form Type: 20-F
Source: 0000950170-25-032340
Chunk: 7

Company: Paysafe Ltd
Filing Date: 2025-03-04
Form: 20-F
Item: Item 3
Chunk 7
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 of operations.
 
Regardless of whether an actual or perceived breach is attributable to our products, such a breach could, among other things:
 •interrupt our operations;
 •result in our systems or services being unavailable;
 •result in improper disclosure of data;
 •result in a demand for a ransom payment;
 •materially harm our reputation and brands;
 •result in significant regulatory scrutiny, including enforcement action such as fines, and legal and financial exposure,
 •cause us to incur significant remediation costs;
 •lead to loss of customer confidence in, or decreased use of, our products and services;
 •divert the attention of management from the operation of our business;
 •result in significant compensation or contractual penalties from us to our customers and their business partners as a result of losses to them or claims by them; and
 •adversely affect our business and results of operations.
 
In addition, a significant cybersecurity breach of our systems or communications could result in payment networks prohibiting us from processing transactions on their networks or the loss of our sponsor banks that facilitate our participation in the payment networks, either of which could materially impede our ability to conduct our business. We may also be subject to liability for claims relating to misuse of personal information, such as unauthorized marketing, or violation of data privacy laws. In addition, our agreements with our sponsor banks and our third-party payment processors (as well as payment network requirements) require us to take certain protective measures to ensure the confidentiality of merchant and consumer data. Any failure to adequately comply with these protective measures could result in fees, penalties, litigation or termination of our sponsor bank agreements. Although we generally require that our agreements with distribution partners or our service providers who may have access to merchant or consumer data include confidentiality obligations that restrict these parties from using or disclosing any merchant or consumer data except as necessary to perform their services under the applicable agreements, we cannot guarantee that these contractual measures will be followed or will be adequate to prevent the unauthorized access, use, modification, destruction or disclosure of data or allow us to seek damages from the contracted party. In addition, many of our merchants are small and medium businesses that may have fewer resources dedicated to data security and may thus experience data breaches. Any unauthorized use, modification, destruction or disclosure of data could result in protracted and costly litigation and cause us to incur significant losses.
 
Material privacy or security incidents may trigger SEC disclosure obligations, other applicable disclosure requirements, or be disclosed publicly even if there is no legally required disclosure. Incident disclosure may increase the risks of lawsuits or government enforcement action