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Openbucks is a technology company.
Openbucks provides an alternative payment platform, allowing online merchants to accept cash and prepaid retail gift cards. Its core product addresses the needs of consumers who lack traditional banking access, enabling them to participate in e-commerce. The platform boasts over 67,000 payment locations across the U.S., leveraging partnerships with major retailers, and integrates with merchant systems via APIs like PaysafeCard and Skrill Quick Checkout, ensuring zero chargebacks for merchants and no fees for users.
The company was founded in 2011 by Dave Clarke, Hillel Krajzman, and Marc Rochman. Their foundational insight was to create an inclusive online payment ecosystem, recognizing the vast demographic excluded from digital commerce due to a lack of credit cards or bank accounts. Openbucks was subsequently acquired by Paysafe Group in 2020, further solidifying its position within the alternative payments landscape.
Hundreds of online merchants, especially within the gaming and eSports sectors, utilize Openbucks to serve a broader customer base. The company's vision centers on making online payments affordable, safe, and universally accessible. It continues to expand its reach, aiming to empower millions of consumers by offering a secure and convenient method to transact online without relying on conventional financial instruments.
Openbucks has raised $5.0M across 1 funding round.
Openbucks has raised $5.0M in total across 1 funding round.
Openbucks has raised $5.0M in total across 1 funding round.
Openbucks's investors include Jerry Yang, AME Cloud Ventures, Amplify.LA, Blockchain Coinvestors AngelList Syndicate, Felicis Ventures, Hardware Club, Immeasurable, Mercury Fund, Outlander Labs, Upfront Ventures, Josh Resnick, Tom McInerney.
Openbucks is a Silicon Valley-based payment technology company founded in 2010 (with some sources noting 2011) that provides an alternative payment gateway for online merchants to accept cash and retailer gift cards, targeting underbanked consumers without credit cards or bank accounts.[1][2][3][4] It enables shoppers to buy gift cards from major U.S. retailers like CVS and Dollar General at over 60,000 locations and redeem them instantly at hundreds of merchants, particularly in gaming, eSports, and entertainment, with features like no chargebacks, quick integration via APIs, and a 2-5% sales lift for merchants.[2][3][4] Acquired by Paysafe Group in July 2020 for an undisclosed sum (after raising $5.3 million), Openbucks now operates within Paysafe's ecosystem, enhancing cash-to-online solutions alongside products like PaysafeCard and PaysafeCash.[1][3][4]
The platform serves online merchants and payment service providers (PSPs) seeking to expand reach to cash-preferring or unbanked customers, solving e-commerce exclusion by bridging physical retail gift cards to digital checkouts without sensitive financial data sharing.[2][3][7] Post-acquisition, it supports hundreds of merchants/PSPs across U.S. payment methods at thousands of locations, with ongoing momentum through Paysafe's global scale processing $98 billion annually.[2][3]
Openbucks emerged in 2010 (or 2011 per some reports) in Silicon Valley, founded by Marc Rochman to address the gap for millions of U.S. consumers excluded from online shopping due to lacking credit cards or bank accounts.[1][3][4] Rochman, as founder, built partnerships with nationwide retailers like CVS (the largest U.S. pharmacy chain) and Dollar General (spanning 46 states), enabling gift card purchases at over 25,000-60,000 brick-and-mortar outlets for redemption at online merchants.[3] Early traction included showcasing at TechCrunch Disrupt in 2011, raising $5.3 million, and growing to 500+ e-commerce partners, many in gaming like Wargaming, Plarium, Goodgame Studios, and Razer.[1][4]
A pivotal moment came with its July 2020 acquisition by Paysafe Group, a global payments leader founded in 1996 with 20+ years of experience, allowing Openbucks to scale under Paysafe's resources while integrating with its eCash solutions like PaysafeCard (PIN-based prepaid) and PaysafeCash (cash-at-point post-purchase).[1][3][4] This evolution shifted Openbucks from standalone innovator to a key U.S. arm of Paysafe's cash alternative offerings.[2][3]
Openbucks rides the cash alternative payments trend, capitalizing on rising demand from merchants to reach underbanked shoppers amid e-commerce growth, especially in gaming, eSports, and entertainment sectors "very much on the rise."[3][4] Timing aligns with post-2010 fintech shifts toward inclusive payments, as 20+ years of digital wallets and cash solutions (like Paysafe's) meet offline-online bridges, fueled by market forces like unbanked populations (millions in the U.S.) and privacy concerns over card data.[3][7]
It influences the ecosystem by expanding U.S. prepaid options within Paysafe's 70 payment types across 40 currencies, enabling seamless business-consumer connections and reducing e-commerce barriers—merchants gain 2-5% revenue uplift while Paysafe bolsters its $98B volume with Openbucks' retail network.[2][3][4]
Post-2020 acquisition, Openbucks will likely deepen integration into Paysafe's global platform, targeting thousands more merchants via enhanced APIs and marketing to sustain sales lifts in booming gaming/eSports.[2][3][4] Trends like rising cashless alternatives, data privacy regulations, and underbanked inclusion (via expanded retail partnerships) will shape its path, potentially evolving Paysafe's U.S. dominance in hybrid cash-digital payments.[3]
As a pioneer in gift card gateways, its legacy endures in democratizing online access, now amplified by Paysafe—positioning it to capture more of the thriving alternative payments market.[4]
Openbucks has raised $5.0M across 1 funding round. Most recently, it raised $5.0M Series A in July 2012.
| Date | Round | Lead Investors | Other Investors |
|---|---|---|---|
| Jul 1, 2012 | $5.0M Series A | Jerry Yang | AME Cloud Ventures, Amplify.LA, Blockchain Coinvestors AngelList Syndicate, Felicis Ventures, Hardware Club, Immeasurable, Mercury Fund, Outlander Labs, Upfront Ventures, Josh Resnick, Tom McInerney, Terry Semel, BV Capital, Clearstone Venture Partners, CrunchFund, Greycroft, Inspiration Ventures, Morado Ventures, Novel TMT Ventures, SV Angel, TiE Angels |