US Paytech Digital River Reportedly Shutting Down

US Paytech Digital River to Shut Down, Lay Off 122 Employees

US-based payments company Digital River is reportedly closing its operations, as reported by The Minnesota Star Tribune.

Digital River to Lay Off Employees and Close Headquarters

Founded in 1994, Digital River provided API-based solutions for order management, e-commerce, and cross-border payment processing. The firm was acquired by Siris Capital in 2014 for $840 million, and it had partnered with major brands such as Adobe, Salesforce, and American Express.

According to the Minnesota Star Tribune, Digital River filed a WARN notice with the Minnesota Department of Employment and Economic Development, indicating that it will shut down its Minnetonka-based headquarters by the end of March. The company will also lay off 122 employees across the US, including remote workers.

Reports suggest the company’s global operations are winding down. The Minnesota Star Tribune also states that insolvency proceedings have been initiated for Digital River’s German subsidiaries, while The Irish Times mentions that provisional liquidators have been appointed for its Irish branch, Digital River Technology Limited.

In a statement to staff, CEO Barry Kasoff explained that the company had been facing severe financial strain due to factors like the contraction of key customers, shorter payment terms, and US trade policies affecting one of its major clients. Kasoff added that the company could no longer access funding from its revolving credit facility and was unable to secure additional funding or a viable solution, forcing them to initiate the wind-down process.

Kasoff confirmed that the company would undergo significant workforce reductions globally, affecting both employees and independent contractors. Some employees may stay on temporarily to help with the transition, but no further details have been provided.

The news follows reports from The Register in October 2024, which claimed that Digital River had failed to pay numerous merchants for products sold through its MyCommerce platform since mid-2024.