Paysafe Group plc (PAYS.L), a provider of digital payments and solutions, has acquired gift card payment network Openbucks for an undisclosed sum.
Among the products it offers, OpenBucks solves a persistent problem for e-commerce as it enables customers to pay for unrelated goods and services online using the gift cards of major retailers. This caters to shoppers who don’t have credit cards or a bank account, or who just prefer to keep their financial information private.
The company counts leading brands such as Subway, CVS Pharmacy, Burger King, Shell, Circle-K, and CITGO, whose regular gift cards can be used as a payment method at thousands of online checkouts.
The acquisition boosts Paysafe’s presence in the e-commerce space at a time when competition in the sector is increasing. It also makes strategic sense for the company as it helps deepen its footprint and catapult Paysafe into the customer’s journey throughout the purchase funnel, from discovery to purchase and payment.
“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,” the company said.
Paysafe launches new services into the US
The deal also solidifies Paysafe’s presence in the US market, which culminated recently with the launch of Rapid Transfer service through the Skrill digital wallet.
As well as facilitating merchant payments through online banking, Rapid Transfer also enables consumers to seamlessly upload funds from their online bank account to their Skrill digital wallet.
Skrill, part of Paysafe Group, has also rolled out its free Money Transfer service in the United States.
The company states that expanding the reach of its free Money Transfer solution comes as a result of Paysafe’s efforts to support the consumers during the current COVID-19 outbreak. It also said that recipients could receive funds in their local bank account or mobile wallet, but they do not need a Skrill account to get paid.
Skrill USA launches the service barely five months after it unveiled a Visa prepaid card for customers of its digital wallet brand. This also allows clients to use their Skrill account balance for in-store and online purchases as well as a cash withdrawal.