OpenTransact

OpenTransact, founded in 2010 by Jake Howerton and Mark Kilaghbian, functions as a payment platform tailored to consolidate, automate, and monitor payment operations. The company has secured $6.48M in funding from investors including Capital Factory, Contour Venture Partners, and FinTech Innovation Lab. In January 2024, Kindcard, a provider of alternative closed-loop payment solutions, signed a letter of intent to acquire OpenTransact.

The firm offers a self-serve banking platform specifically designed for businesses that are considered high-risk and may not be able to use conventional services like Stripe or PayPal. This includes merchants operating in sectors such as CBD and gaming. The platform provides these businesses with a Software-as-a-Service (SaaS) solution that combines payment processing with integrated risk management tools. OpenTransact's core offering is its API, which acts as a single integration point for a variety of FinTech APIs, banking providers, payment processors, and third-party data services. This enables businesses to connect any payment method or provider and route transactions to any connected service without altering their initial integration. The platform's features include the ability to create customer profiles, securely tokenize and store payment data, and route transactions. It is built on a REST-based architecture and uses a standardized JSON:API format. Additionally, the system supports various use cases such as simple and advanced shopping carts, invoicing software, crowdfunding services, subscriptions, and mobile payments. Compliance features for PCI-DSS, NACHA, and PSD2 are included to meet regulatory requirements and protect customer data across different payment methods and locations.

The company's business model centers on providing a unified payment integration that reduces the development effort required for maintaining multiple payment systems. By connecting to OpenTransact, businesses can add a wide range of payment options without needing specialized in-house knowledge. This single integration point allows for real-time data synchronization across gateways, offering flexibility and more options across different processors. The platform aims to simplify the complexities of the financial space, which is often governed by incompatible legacy standards. Keywords: high-risk payment processing, payment gateway integration, SaaS payment platform, OpenTransact, financial software, payment operations automation, fintech API, digital payments, secure payment processing, risk management tools, CBD payment processing, gaming industry payments, alternative payment solutions, payment-as-a-service, cross-border payments, e-commerce payments, mobile payments, subscription billing, payment data tokenization, compliance solutions