August 31, 2017
Consolidation in the online payments space continued yesterday with the announcement that a pioneer in providing e-gift card programs to retailers has been acquired. Blackhawk Network, a company that got its start selling gift cards through displays at supermarkets, has acquired CashStar for $175 million. Portland, Maine-based CashStar, founded in 2007, was one of the first companies enabling the ordering and distribution of e-gift cards through digital channels. For Blackhawk, the deal means it can expand from mainly offering third-party physical gift cards through bricks-and-mortar locations to enabling retailers to reach consumers via e-commerce Websites, mobile Websites or apps.
“We’re looking forward to leveraging the synergies across our businesses and technologies to offer comprehensive gift card solutions for a brand to sell directly to consumers or businesses through digital channels,” said David Jones, general manager of digital and incentives for Blackhawk. “We are committed to maintaining CashStar’s merchant-centric culture that has earned the company so much success to-date.”
CashStar provides digital gift card distribution for retailers including Sephora, Starbucks, The Home Depot, Uber and Walmart.