US fintech Kindcard seeks to acquire OpenTransact

US-based closed-loop payment solutions provider Kindcard has signed a letter of intent with paytech Acepay regarding the potential acquisition of self-serve banking platform OpenTransact.

OpenTransact has been designed to support high-risk businesses that are typically unable to use services such as Shopify, PayPal and Stripe.

Through OpenTransact, merchants in the CBD and gaming industries, for example, can access a Software-as-a-Service platform that integrates payment solutions with risk management tools.

Michael Rosen, chief executive officer of Kindcard, said: “We believe that today’s announcement represents a significant opportunity to enhance our revenue and IP tech stack, and offer secure, all-in-one software and payments-as-a-service options to high-risk merchants that are seeking to manage their consumer website shopping experience and provide secure stable payment processing at checkout.”

Kindcard provides alternative closed-loop payment solutions to businesses via its proprietary ‘Pay with Deb’ consumer app and merchant services platform.

The company tends to target the mid- to high-risk merchant market where, according to Kindcard, businesses incur higher transaction costs.

Users of ‘Pay with Deb’ can purchase ‘Deb Tokens’ to store in their mobile wallet and then use these to make purchases within the ‘Pay with Deb’ merchant network.

“The opportunity to join forces with Kindcard represents an exciting potential new chapter for OpenTransact, with our shared vision to revolutionize the way we think about high-risk transactions, blending innovation within Kindcard’s visionary approach as an alternative payment provider,” added William Clark, OpenTransact’s founder and chief executive officer.