Did you know that e-gift cards increased by 50% during the COVID-19 lockdown??
What is a Gift card?
A gift card is a virtual or physical card that has a specific funded amount of cash for a duration of time. A gift card is a special kind of card that you can use for making purchases at certain locations such as restaurants, filling stations, and majorly at various online retail sellers.
The two common types are the open-loop card and the closed-loop gift card. The open-loop is acceptable anywhere the brand is being used and can be used for all kinds of transactions, just like the bank prepaid debit or credit card, whereas the closed-loop gift card is only applicable for the brand products. It is limited to the brand’s retail shop and sometimes extends to other brands once in a while. An example is the Amazon company, in which you can also purchase your iTunes gift card both from the Apple store and Amazon store.
Gift cards were introduced in 1994 by Neiman Marcus, a retail store, to increase the yield of their profits. In 1995, the movie sector known as blockbuster entertainment started the production of gift cards in large quantities and launched it in 1996 for people’s usage. Afterward, the Mobil gas card was released to make payments for cars and other automobiles’ gas consumption. Many companies and brands adopted gift cards later and yielded loads of cash returns. What could have led to gift cards, and how has it benefited these brands and companies?
5 major uses Of Gift Cards
Gift cards have been a huge source of income for years past for different brands and companies. The global gift cards market size was valued at $619.25 billion in 2019 and is projected to hit $1,922.87 billion by 2027, growing at a CAGR of 15.4% from 2020 to 2027 as predicted by the gift card statistics 2020. Here are the different benefits that gift cards offer businesses:
- Bring about new customers: people are always drawn to comfort or things to ease their life. Gift cards serve as a means of letting people know about your services and how to get them with ease. An example is someone given a gift of an iTunes gift card, the next plan of action is how to purchase an Apple product with such a card, and this allows this fellow to visit the apple store next time even without a gift card to purchase more goods if they find it suitable.
- Serve as organization bonus or incentives: many companies now use gift cards as a bonus or appreciation of their workers for a job well done. Companies adopt gift cards for incentives for holidays, bonuses, parties, promotions, and many more.
- Used as a gift: A prominent use of this card is that it serves a purpose of a gift irrespective of age or qualification. The name gift card was derived from its usage as a gift and hence called a gift card. You can use it for birthday occasions, get-to-together parties, wedding anniversaries, and a return of the favor. It all suits this purpose well and has been comfortable for its users over time.
- Increase sales marketing: Gift cards have this way of a customer overspending beyond the card’s limit. Many customers tend to spend more on going through the stores of a particular brand and using beyond the limit of the gift card. It has served this purpose well and has been one of the profitable ways the brands earn maximum profit.
- Enhances company’s visibility or publicity: many brands now use gift cards because of how effective it has increased the awareness of early companies over time. Gift cards are always embedded with your company’s logo and brand, which serves as an effective marketing tool for people to know. The more people use your gift card, the more your customers increase.
It’s indisputable that gift cards will continually be used for years to come as it serves a pivotal function for people, business start-ups, companies, and organizations.
Best Platform to trade your gift cards
Despite the benefits offered by gift cards, there are times that you were given a gift card as a gift or a bonus in your place of work, and you have no use purchasing anything related to that brand. What’s the best option to follow through? If you want to exchange your gift card for Naira and don’t know where to get it done, worry no more as we at http://giftcardshub.com.ng bring a solution to the table. We offer you the best rate you can ever think of for your gift cards. Our transaction is swift and hitch-free in delivery. We consider our customers as family and try to make the procedure as simple as possible. Visit http://giftcardshub.com.ng now and convert your gift cards to a handy cash reward. Think giftcardshub, think good rates.
How trade your gift cards for cash
- Visit our website or download our mobile app on playstore
- If you are new, create an account and sign up. For existing users, log in with you details to continue trading
- Select the gift card you want to trade and it’s category
- Read the terms of trade attached to your gift card
- Upload the image of our gift card if required
- Proceed to trade. Once your gift card is confirmed, you’ll recive payment instantly.