Openbucks is a payment gateway that allows online merchants to accept retail gift cards as an alternative form of payment to credit cards, something that is particularly popular amongst online gaming and eSports operators. For Paysafe, this latest investment forms part of its strategy to further expand its cash alternative payment offering in the US, one of the world’s largest e-commerce markets with revenue projected to grow from $374bn in 2020 to $476bn by 2024.
Openbucks, which was founded in 2011, enables millions of US consumers who do not have access to credit cards, or who prefer not to share their sensitive financial information online, to pay online using a gift card. It partners with major nationwide retailers, including CVS, who operate the US’s largest pharmacy chain, and Dollar General, a popular convenience store operating in 46 states, to offer consumers in over 25,000 brick and mortar outlets to buy the gift cards that can then be redeemed at participating online merchants.
Many of its current merchant customers operate in the US gaming and eSports space, which continues to expand rapidly, but the alternative payment method is equally serviceable across multiple shopping and entertainment sectors. It guarantees zero chargebacks to merchants and zero fees to consumers, making it a safe, secure and convenient alternative payment solution.
As part of the deal, the Openbucks team will move across to Paysafe and become part of the company’s global eCash division, which is headed up by Udo Mueller. Openbucks founder, Marc Rochman, will also continue as a strategic adviser to Mueller and the team.
“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,” commented Udo Mueller, CEO of Paysafe’s eCash division.
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.”
The acquisition is expected to complete by the end of the month.