Specialized payments platform Paysafe announced the acquisition of US-based payment technology company Openbucks.
Founded in 2011, Openbucks is a payment gateway which allows online merchants to accept retail gift cards as an alternative form of payment to credit cards, this is especially popular amongst online gaming and eSports operators. The acquisition of Openbucks is part of Paysafe’s strategy to expand its cash alternative payment offering in the US.
Openbucks allows consumers without access to credit cards or who prefer to keep their financial information private, to pay online with a gift card. Openbucks partners with US retailers such as CVS and Dollar General. Many of its merchant customers operate in the US gaming and eSports sector which is continuing to grow, however Openbucks’ payment method is spread across multiple shopping and entertainment areas. The method guarantees no chargebacks to merchants and no fees for consumers.
The acquisition, which is for undisclosed sum, will integrate Openbucks team in Paysafe and make it a part of the company’s global eCash division, led by Udo Mueller. Marc Rochman, Openbucks founder, will also continue as a strategic adviser to Mueller and the team.
Udo Mueller, CEO of Paysafe’s eCash division commented:
Openbucks is a highly innovative alternative payment solution provider which has built deep distributor partnerships across the US. The cash alternative payment market is a thriving one and we are seeing increased demand from online merchants, who want to enable gift cards as a payments solution in order to reach new consumers, particularly in sectors such as gaming, eSports and entertainment which are very much on the rise.
Philip McHugh, CEO of Paysafe Group, added:
This tuck-in acquisition reinforces our strategy of investing in, and growing our core, specialized payments offering in payment processing, digital wallets, prepaid, and eCash solutions. We’re seeing a lot of expansion opportunities in the US marketplace and I am confident that the integration of Openbucks into our Group will become a key part of our US growth story.
Marc Rochman, founder of Openbucks, concluded:
I’m very excited to have signed this deal with Paysafe and look forward to integrating Openbucks into a much larger Group that shares common values, a passion for payment technology and service, and a dedication to providing access to online commerce to everyone, especially the underbanked and unbanked. Now, with the full backing of a global payments provider who is heavily committed to expanding in the US marketplace, the Openbucks vision and strategy will be certain to accelerate, and we will be able to provide a world class alternative payment solution to thousands of additional online merchants.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
