Paysafe Group, a London-based specialized payments platform, has acquired Openbucks, a Sunnyvale, California-based payments gateway that allows online merchants to accept gift cards as an alternative to credit cards for purchases.

Paysafe said the agreement is part of a strategy to boost its online cash business in the U.S., which represents one of the biggest e-commerce markets in the world and is projected to grow from $374 billion in 2020 to $476 billion by 2024.

Philip Mchugh, Global CEO, Paysafe

"The COVID-19 pandemic has galvanized e-commerce in the United States," Philip McHugh, global CEO of Paysafe, told Mobile Payments today via email. "Over half of Americans have been shopping online more than previously, with 25% of consumers transacting with online merchants for the very first time, according to our research from April."

He said that U.S. consumers have remained more loyal to cash than consumers in the U.K. and Germany however, and says that many U.S. consumers would like to find a way to convert that cash into online use.

Openbucks, founded in 2011, has provided a way for consumers to convert cash into electronic payment, primarily in the gaming and eSports industries. The company has partnered with major U.S. retail chains like CVS pharmacy and Dollar General to provide the ability to make secure online payment with customers that are generally underbanked.

Under the agreement, the Openbucks team will move over to Paysafe and continue to operate as part of the Paysafe eCash business, led by Udo Mueller. However the Openbucks brand name will continue. Openbucks founder Marc Rochman, will continue as a strategic advisor to Mueller and his team.

Terms of the deal were not released.