London-based Paysafe, a leading specialized payments platform, announced its acquisition of Houston-based payment technology company Openbucks, for an undisclosed sum.
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 among online gaming and e-sports operators. For Paysafe, this latest investment forms part of its strategy to further expand its cash alternative payment offering in the U.S., one of the world’s largest e-commerce markets with revenue projected to grow from $374 billion in 2020 to $476 billion by 2024.
Openbucks, which was founded in 2011, enables millions of U.S. 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 the largest pharmacy chain in the U.S., and Dollar General, a popular convenience store operating in 46 states.
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 U.S.,” said Mueller, CEO of Paysafe’s eCash Division. “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, e-sports 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 e-cash solutions. We’re seeing a lot of expansion opportunities in the U.S. marketplace, and I am confident that the integration of Openbucks into our group will become a key part of our U.S. growth story.”
“I’m very excited to have signed this deal with Paysafe,” commented Rochman, “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 U.S. 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.”
