Openbucks Raises Nearly $5 Million to Develop Its Gift Card Network

by Mercator Advisory Group 0

Openbucks Corp., which is based in Santa Clara, Calif., announced on July 17 that it has raised $4.8 million in funding to develop its payments network that lets people pay for online goods and services with closed-loop gift cards.

A group of investors led by Yahoo co-founder Jerry Yang has agreed to invest $4.8 million in a Redwood City, Calif., payments network that lets use retailers’ gift cards to buy goods and services from other merchants.

The Openbucks system is still in its infancy, but it offers some interesting marketing opportunities for retailers and online merchants. The task for issuers is making sure that they find potential partners who will be complementary and drive additional traffic and sales to their stores.

Click here to read more from American Banker.

Click here to read more from Openbucks’ press release.

Click here to read more about prior Openbucks coverage.