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
Mobile Banking is changing consumers' relationship with their money
The latest analytics from comScore Inc. indicate that the number of consumers using mobile online banking has increased 45% since one year ago. This staggering number is proving the shift to mobile technology use is growing, and most importantly, that consumers are beginning to trust mobile technology more as it continues to develop. Upon the initial introduction of mobile financial applications the majority of consumers indicated through various surveys and studies that they used mobile technology, but would not do so for banking or financial purposes. Having a trusting consumer base has caused a massive growth in mobile banking, which could also mean big changes for gift card usage and receipt of employee rewards. Imagine getting a spot reward, gift card from your boss for doing well on a big project, and having it download right to your phone. Or having your year end bonus go into your checking account and being able to move that money around on your way to buy your holiday gifts. Mobile banking is changing the way people handle their money. How will it change your financial attitudes? Do you trust mobile banking?
For more information on the latest comScore Inc. analysis click here.
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
Google Wallet, gaining steam, revolutionizing payment
It's baack, we have blogged about it before, but now it walks among us, so it seems time to revisit Google Wallet. It is the first smart phone app, only available on a very select few smart phone models, that allows you to complete payment transactions using your phone, instead of a credit card, or the prehistoric form of payment, cash. Google wallet is revolutionizing commerce, and how people recieve rewards. Imagine how easy it would be for a company running a health and wellness program to simply place electronic CVS/Pharmacy gift cards in their employees' Google Wallet accounts, instead of going through the hassle of ordering physical cards, and having to have the cards activated. As revolutionizing as Google Wallet could be, it will still take time to catch on. For one, it is not yet widely available, and it would be a bit of a stretch to say that people will switch cell phones, or even carriers for this technology. Additionally, it remains to be seen how many consumers will actually use the technology, given that a wide margin have expressed discomfort in using mobile technology for financial purposes, give the possibilities of identity theft and hacking. Google Wallet will revolutionize commerce, and the face of the gift card industry, just not immediately.
For more information on Google Wallet, from someone who has actually tested the technology, click here
Good News Growth for Prepaid and its Gift Card Segment
Prepaid and gift cards sales are amplified with new activity as technology paves the way to better than expected growth. Mercator Advisory Group recently reported that all segments of closed-loop prepaid exceeded their previous forecasts for 2010. In-store gift cards were forecasted at 4% growth for 2010, but total load volume hit $84.6 billion, up 10% from $76.9 in 2009. The B2B gift card market realizes much of this growth via gift card categories like digital-content (online games and social networking credit) and prepaid mobile; gift cards received more loads for these digital-content activities. Retailers are also doing a better job of integrating their gift cards with loyalty programs and other consumer promotions, which catches the attention of potential incentive and rewards buyers. “Loads on employee and partner incentive closed-loop cards increased 10% and loads on consumer-incentive cards also grew 10%”, states Digital Transactions in their Mercator report overview:
Buoyed by Gift Cards, Closed-Loop Prepaid Grew Faster Than Expected in 2010 “On the whole, what we’re seeing is even the closed-loop market is showing some resilience in the face of the economy,” Jackson says. Consumers seem to be recognizing the true value of their gift cards, and “many retailers are doing a better job of integrating their gift cards with loyalty programs and other promotions, Jackson says. “They’re realizing that gift cards are not just a plastic version of paper gift certificates,” he says. Source:
Digital Transactions: Buoyed by Gift Cards, Closed-Loop Prepaid Grew Faster Than Expected in 2010
