eGift Cards: On the Rise, But How are They Perceived by B2B Buyers?
eGift and mobile gift cards are a popular topic as excitement grows around digital technologies. CreditCards.com reports that one half of the major gift card brands that offer eGift cards only started offering them this year. Retailers and merchants are ramping up to take advantage of growing mobile and tablet buying segments, as they are quickly becoming some of the most valuable online shoppers. Interestingly, when GCP recently surveyed B2B gift card buyers; we found that the B2B market still prefers to purchase physical plastic cards over
The Sky is NOT Falling on Plastic Gift Cards
With all the hub bub about prepaid technologies like mobile wallets, mCerts and virtual gift cards, Ben Jackson from Mercator Advisory Group, offers us his calming and factual perspective in
“The future form of closed-loop gift cards – Reports of plastic’s demise are greatly exaggerated”. Ben examines 3 great lessons of history to temper the overstated destiny of plastic gift cards and advises “that new technologies do not always completely distance old ones”. The history lessons offer great perspective that “There will always be a place for plastic, but (the) day will soon arrive where virtual cards and mobile cards will be a necessary part of every issuer’s prepaid strategy. The task for issuers is to figure out what needs each form factor fills and tailor their program to make each work towards the best results”, states Jackson. This is great advice for issuers, retailers and merchants as they look to grow their businesses with diversity versus alienating parties via the next big technology. Source:
Payments Journal, Mercator Perspectives
Are Gift Cards going Green?
At GiftCard Partners, we follow gift card technology closely and we’ve been doing some trend reporting on e-Gift cards (aka eCerts & virtual gift cards), mobile Gift cards (aka mCerts), and their place in
virtual wallets (see last week’s post:
Virtual Wallets: What are they…Really?). These technologies affect our clients (retailers) as they navigate through their adoption of technology across their retail locations, ecommerce sites, and in their B2B or bulk gift card business. It also affects our customers, as they receive their cards and deliver them to their end user differently. The end users, who receive the cards as part of workplace incentive programs or loyalty rewards, receive their cards fast and can use them with optimal convenience. Here, let’s take notice of yet another party that benefits from this technology…Mother Earth. In E-Gift Cards Pushing Out Plastic Credit, Earth911 highlights that implementing e-Gift card technology reduces the industry’s carbon footprint and “spares natural resources by offering retail credit via online delivery”. Decomposition resistant plastic card resins, laminates, inks & dyes combined with packaging and fuel for shipping…all are eliminated by technologists and the retail industries’ movement to Go Green with gift cards. Also consider that gift cards are just a tiny slice of the overall plastic and paper pie, if you add up all the payment methods that could eventually reside in a virtual wallet. Although consumer purchased gift cards were the first to go “e”, we are also seeing a strong migration in the more complicated to fulfill and distribute, B2B market. More than ½ of our clients already offer technology based gift cards and another ¼ of them are in the process now. As more retailers adopt non-plastic gift card methods, companies like
CashStarTM,
RevTrax® and
Transaction WirelessTM lead the way to provide critical pieces to make B2B bulk corporate gift cards widely available. Until our wallets are all virtual, encourage your cards’ recipients to recycle their used gift cards here:
Visit Alison Neumer Lara's Earth911 article.
