Openbucks

Openbucks operates as a payment gateway focused on providing alternative payment solutions for e-commerce. The company was established in 2011 by Marc Rochman and Hillel Krajzman, with Dave Clarke also cited as a founder. Rochman, a serial entrepreneur with extensive experience in the payments industry, was inspired to create Openbucks after a personal incident involving his son's online purchases, which highlighted the need for a secure cash-based payment method for the web. Hillel Krajzman brought over a decade of experience from the digital goods sector and holds a Master's degree in Economics.

The firm's primary mission is to serve the millions of consumers who are excluded from online shopping because they lack bank accounts or credit cards, or are hesitant to share their financial data online. Openbucks' business model centers on enabling online merchants to accept cash and retailer gift cards as payment. This is achieved through a vast network of over 67,000 physical locations, including major retailers like CVS Pharmacy and Dollar General, where consumers can purchase gift cards. These cards can then be redeemed directly on participating merchants' websites. The service is particularly popular in the online gaming and eSports communities. For merchants, the platform guarantees zero chargebacks, and for consumers, there are no fees, making it a secure payment alternative. Revenue is generated from the merchants who integrate the Openbucks payment option.

A significant milestone in the company's history was its acquisition by Paysafe, a specialized payments platform, in July 2020. Following the acquisition, the Openbucks team was integrated into Paysafe's global eCash division, with founder Marc Rochman staying on as a strategic adviser. This move was part of Paysafe's strategy to expand its alternative cash payment offerings in the U.S. market. Before its acquisition, Openbucks had raised $4.8 million in a Series A funding round in 2012. The company continues to operate under the Openbucks brand, allowing merchants to integrate its services via APIs like the paysafecard API and Skrill Quick Checkout API.

Keywords: alternative payments, payment gateway, cash payments, gift card payments, unbanked consumers, e-commerce payments, online gaming payments, zero chargeback, Paysafe, Marc Rochman, Hillel Krajzman, fintech, secure payments, eCash, prepaid solutions, CVS, Dollar General, retail gift cards, online merchants, payment processing