Digital gift card providers are implementing different market expansion strategies in North America

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Due to the shift in the consumers’ preference toward digital gift cards, the market recorded strong growth over the last eight quarters in North America. Consequently, digital gift card providers are developing innovative solutions eyeing lucrative market opportunities in the region. For instance,

• In February 2022, Simplii Financial, the digital banking division of the Canadian Imperial Bank of Commerce, introduced a new digital gift card marketplace for its clients. The fintech enables its clients to access the digital gift card marketplace through online as well as mobile banking. Moreover, clients can send prepaid Visa gift cards of up to US$250 to anyone in Canada through the marketplace. 

Simplii added different features to attract consumers such as,

• These gift cards do not require any activation
• Can be customized with a theme and can be provided with a more personalized recipient experience
• These gift cards can be sent to anyone in Canada through email
• While shopping in physical retail locations, gift cards can be added to digital wallets such as Apple, Google, and Samsung Pay 
• Moreover, gift card recipients will be able to view card details, transactions, and their balance on the online platforms

With the increased online shopping and the rapid growth in digital gift card usage over the past few years, the fintech plans on adding new merchant partners, thereby expanding the marketplace over the longer run. Consequently, through the innovative digital banking gift card marketplace, fintech is likely to attract significant customers in the upcoming quarters in the country.

Digital gift cards companies are also partnering with the governments to expand their target market. In November 2021, the City of Goleta, United States, announced the launch of a digital gift card marketplace named GoodLandGoodShopping.com designed specifically to promote Goleta businesses. Notably, the local government partnered with Giftbar to develop this particular website. Giftbar is a vendor based in San Luis Obispo, which has experience and expertise in gift card commerce. Through its technology, Giftbar enables businesses to sell and redeem e-gift cards. Also, the company provides the provision to send gift cards through email or text instantly with personalized messages by creating a unique virtual gift or care package.

Furthermore, these gift cards can be bought from the website from Goleta businesses, and the merchants can register for free on the website. Through this marketplace, local government is boosting local spending, hence, helping the businesses to recover from the impacts of the pandemic over the four to eight quarters of the country.

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