B2B gift card space sees strong demand globally

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In a post-pandemic era, as consumers start socializing, the shopping pattern of the consumers is exhibiting some interesting changes regarding gift card usage, which the retailers and brands are taking into account before adopting any strategies. Now consumers are opting for buying products online, taking deliveries from stores or buying in-store. Since gift cards have always been an important tool for retailers to tackle the shifting trends, more gift card providers are observed to enter into innovative partnerships to attract more retail clients. For instance,

• In July 2022, Blackhawk Network, one of the key players in the gift card space, announced to partner with Aurus, a unified payments platform, to bring payment innovations to the retail commerce space. Since shopper loyalty has become of prime importance for retailers and brands, gift card providers are partnering with software innovators such as Aurus to help them grow payments with new ideas and innovative solutions. Notably, the Omni-commerce payment platform of Aurus generally accepts all forms of payments, such gift cards, credit cards, etc. 

Providing digital payments such as digital wallets and pay later increases the chances of a shopper’s return significantly. Therefore, the gift card provider strategized to attract more brands and retailers through this new partnership. Under this partnership, both the merchants and consumers will be able to make payments using their digital wallets, and even pay through buy now, pay later (BNPL) options. Together with this, the partnership also opens the payment option of cryptocurrency. Apart from this, Aurus platform also supports payment options for food stamps and cash benefits. Therefore, it is expected that post-partnership, Blackhawk Network will be able to attract a significant number of retail and grocery companies through its innovative gift card and payment programs.

• Similarly, in July 2022, Factor4, LLC, a gift card platform, announced a gift card partnership with Texas-based Ovvi, which has been working as a tech developer for the restaurant, hospitality and retail industries. Through this new gift integration, Ovvi will provide an omnichannel gift card solution to merchants which will enable them to process gift card transactions not only in-store and online but also through mobile devices. As a result, this partnership will help Factor4 cater to a significant number of Ovvi customers, i.e., restaurant and retail verticals, with a complete gift card solution. On the other hand, the multi-store management platform of Factor4 will also enable Ovvi with tools to serve chain stores better. Since the demand for hybrid shopping is seen to rise, this partnership will help streamline and enhance the gift card offering by selling physical and online gift cards. Therefore, it is expected that with the shift in consumer preferences, this innovative partnership will attract more businesses to boost the hybrid shopping experience.

Since gift cards are also increasingly becoming part of customer loyalty experiences, employee recognitions, marketing promotions, and even sales incentive programs, rewards and incentive platforms are also plunging into the B2B gift card space to attract more customers. For instance,

• In September 2022, an all-in-one digital rewards and incentives platform, AAeGift Rewards, launched a B2B gift card bulk order service for United States businesses. This platform delivers real-time gift cards to employees and customers, which is a powerful tool for maximizing business results.

Gift card services in the United States are generally very slow in responding to their clients. AAeGift Rewards target this issue through its one-on-one account management staff to solve the queries with follow-ups, together with 24 hours customer service. Additionally, the platform successfully streamlined its order, payment, and delivery, all into a single platform to deliver a seamless user experience.

AAeGift Rewards, which was running promotions where new signees can receive rewards upon registration together with bonuses for completing their first purchase, is expected to see strong adoption amongst the businesses in the United States. Since gift cards are recognized as a growth strategy tool to advertise their brands, draw in new clients, raise brand recognition, reduce fraud, and boost sales, the B2B gift card market is projected to witness continued growth globally.

• Another customer loyalty and employee engagement solutions platform, Merit Incentives, based out of the MENA region, introduced a Software as a Service (SaaS) platform named Giftcardsby.com in August 2022. This new platform enables several brands and businesses to design, process, and distribute brand specific digital gift cards to their customers. Furthermore, in order to provide tailor-made digital gift card solutions to customers, Merit Incentives partnered with talabat, the local tech platform. Therefore, now, these gift cards can be redeemed on any talabat products such as food, groceries, flowers etc.

Giftcardsby.com, a 360-degree platform, helps small and medium-sized local businesses attract customers through innovative gifting solutions. Since customers are increasingly cutting back on spending, retailers and brands are investing in new strategies to attract and retain customers through gift cards. Therefore, it is expected that more businesses will adopt this new platform to build consumer engagement in the region.

With the change in the economic climate, the preference for digital gift cards in the B2B gift card market is increasing as these can be issued instantly at very little cost. Moreover, as compared to other rewards, gift cards are less labor-intensive and also cheaper. Along with this, gift cards allow businesses to transfer savings to their customers and provide them value in long run, thus helping businesses to retain their customers. Therefore, over the next four to eight quarters, not only the gift card providers but also loyalty solutions providers are entering the B2B gift card space to tap the increased demand

To know more and gain a deeper understanding of the global gift card market, click here.