Qwikcilver introduces gift card exchange platform this festive season

Print

Email

Gift card technology and prepaid solution provider Qwikcilver has introduced C2C gift card trading exchange platform where unused or partly used gift cards can be converted to cash. Buying gift card option is also present at specially discounted rates. Development of platform took roughly 8 weeks and has been launched just before festive season. Among other developments, the company bagged investments through Russian proprietary fund, Sistema Asia Fund which has enabled it to gain access to more than 5000 retail joints, entertainment and travel solutions as well as currency providers. Company’s gifting app Woohoo is working towards digitization of its gift cards which would facilitate conversion of loyalty points to cash from banks and financial institutions.

According to PayNXT360, current value of business segment comprising gift vouchers and cards in India is USD 915 million in 2016. Entire gifting business in India is worth over USD 10 billion in recent times. Increase in smartphone usage and connectivity at all time provided due to mobile internet has facilitated new payment and gifting options. Around 6% of gift cards issued are digital and 2% to 3% sales of retail stores are channelized through them. This segment has also increased sales of offline stores by 36% in past couple of years. Majority consumers prefer gift cards instead of plain cash which tends to be impersonal or gifts that are useless in most cases. Gift cards and vouchers provide flexibility and convenience in shopping experience which is driving the tremendous growth of this segment. Indian gift card industry is expected to record a CAGR of 24.3% during 2016-2020.

Qwikcliver has a customer base of prominent retailers including Flipkart, Shoppers Stop, Titan and Lifestyle. Amazon acquired minority stakes in the company last year. Strategic launch of this platform before festive season is anticipated to attract more consumers towards this service, target consumer segment being 15 to 35 years in 25 popular cities. Moreover, conversion of leftover balance to cash is a lucrative approach towards gaining competitive edge and strengthening its position in the market.

To know more and gain deeper understanding of prepaid gift card industry in India, click here