Payments network Paysafe has announced the acquisition of Openbucks, a US-based payment processing business, as the company continues to grow its reach around the world.
The deal is scheduled to be completed by the end of the month, saying the acquisition would represent “a key part of our US growth story.”
The investment is part of Paysafe ‘s plan to further expand its cash alternative payment service in the US, hailed as one of the largest e-commerce markets in the world with sales expected to rise from $374 billion in 2020 to $476 billion by 2024.
Paysafe Group chief executive Philip McHugh commented: “This tuck-in acquisition reinforces our strategy of investing in, and growing our core, specialised 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.”
Founded in 2011, Openbucks is a payment gateway that enables online retailers to accept retail gift cards as an alternative method of credit card payment, lauded as “particularly popular amongst online gaming and sports operators.”
Openbucks founder Marc Rochman explained: “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 Openbucks team will move over to Paysafe as part of the deal and become part of Udo Mueller ‘s global eCash group, headed up by the ceo. Openbucks ceo Marc Rochman will also serve as Mueller and the team’s strategic advisor.
“Openbucks is a highly innovative alternative payment solution provider which has built deep distributor partnerships across the US,” added Mueller.
“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.”
— Paysafe (@PlugIntoPaysafe) July 27, 2020