Paysafe to acquire payment technology firm Openbucks

UK-based online payments company Paysafe has acquired US-based payment technology company Openbucks, for an undisclosed amount.

Openbucks is a payment gateway that enables online merchants to accept retail gift cards as an alternative form of payment to credit cards, which is common among online gaming and eSports operators.

Under the terms of the transaction, Openbucks will become part of the global eCash division of Paysafe, under the leadership of Udo Mueller, while its founder Marc Rochman will continue as a strategic adviser to Mueller and the team.

Paysafe said that the acquisition of Openbucks is part of its strategy to further expand its cash alternative payment offering in the US.

Paysafe Group CEO Philip McHugh said: “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.”

Established in 2011, Openbucks is said to help US consumers who lack access to credit cards, or who prefer not to share their financial information online, to pay online using a gift card. Customers can buy the gift cards and redeem them at participating online merchants.

The company has joined forces with nationwide retailers, including CVS, which operates the US large-scale pharmacy chain in the US, and Dollar General, a convenience store operating in 46 states.

The partnerships offer consumers in over 25,000 brick and mortar outlets to buy the gift cards, which can be redeemed at participating online merchants.

Recently, UK-based current accounts and money transfer services provider Monese has partnered with Paysafe, to offer cash services to its customers.

With the partnership, Monese consumers can top up their accounts directly with cash, through Paysafe eCash solution, dubbed Paysafecash.