Paysafe cracks the piggy bank for Openbucks acquisition

Paysafe, a powerhouse in the specialized payments platform sphere recently announced its acquisition of US-based payment technology firm, Openbucks without disclosing the sum involved in the purchase.

Openbucks operates a payment gateway that offers online merchants the capability to accept retail gift cards as a payment alternative to credit cards.  This secure technology is a popular innovation with online gaming and eSports operators. This latest investment is a component of Paysafe’s strategy for expansion of its cash alternative payment service in the US e-commerce market which is among the world’s largest with revenue projected to grow from $374 billion in 2020 to $476 billion by 2024.

Openbucks was first founded in 2011 and has allowed millions of US consumers to transact online using gift cards, avoiding the need for credit cards, and protecting their sensitive information. The service is partners with major US retailers like CVs who run the largest pharmacy chain in the country and Dollar General who run a massive chain of convenience stores in 46 states. 

Consumers nationwide have their choice of 25 000 brick and mortar outlets where they can purchase the gift cards and redeem them at participating online merchants. A large chunk of these merchants are part of the rapidly expanding US gaming and eSports industries, but the payment method can also be used across many online shopping and entertainment sites. The service guarantees zero chargebacks to merchants and zero fees to consumers, making it safe, secure, and convenient and cost-effective.

The Openbucks team will transition across to Paysafe, now forming part of its global eCash division, headed by Udo Mueller. The founder of Openbucks, Marc Rochman, will continue his role as a strategic adviser to Mueller and the rest of the team.

Mueller was on hand to offer comment on the acquisition “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, also had something to add, “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, the founder of Openbucks, wrapped things up, saying,  “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.”