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September 27, 2021 • Issue 21:09:02

Gift cards:

an all-around good value prop

"Virtual gift cards are definitely one of the biggest innova-
tions in recent years within the prepaid market," said Laura
Handly, an analyst at Mercator Advisory Group.

Research conducted by Fiserv found 53 percent of consum-
ers have made purchases using gift cards stored in their
digital wallets. In fact, gift cards are the third most com-
mon payment type used within digital wallets, behind
credit and debit cards, Fiserv found.

"Many consumers do prefer a fully electronic gift card ex-
perience," said James Shepherd, president of CCSales Pro,
which specializes in MLS training. "Also, keep in mind that
some businesses are card-not-present or allow online or-
dering experiences which make electronic gift cards more
convenient."
Digital, physical both popular
By Patti Murphy Not that consumers are shunning traditional gift cards. For
example, Rubin pointed out that while SwipeIt has seen a
repaid cards generally and gift cards in particu- rise in digital gift card orders, the majority of sales occur at
lar are a winning proposition—for merchants, brick-and-mortar locations.
consumers and ISOs and merchant level sales-
P people (MLSs). For consumers, gift cards make The digitalization of gift cards isn't cannibalizing tradi-
gifting easy. This is especially true with e-gift cards.
tional gift card programs at all, added Tom Niedbalski, vice
president for global solutions and partnerships, Fiserv gift
"E-cards are a perfect last-minute gift," said Larry Rubin, card solutions. "It's definitely additive; it drives growth," he
founder, president and gift card guru at SwipeIt, a Massa- said.
chusetts-based purveyor of gift card programs. "We saw an
incredible amount of instant e-gift card sales on the day
before Mother's Day and on Mother's Day," he stated. Fa-
ther's Day not as much, but activity was "still incredible,"
he added. Contributed articles inside by:

SwipeIt's digitally ordered gift cards can be sent electroni- Jeff Fortney .............................................................................................29
cally by email or text message. The company also accom-
modates online ordering with physical delivery, loading Casey Scheer ..........................................................................................31
plastic cards with value and mailing them to recipients. TOC on page 3
Rubin noted that about 40 percent of gift cards ordered
online with a click of a SwipeIt button get mailed out as
plastic cards.

Continued on page 26