Switzerland gift card market outlook

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In the midst of the ongoing boom in the cryptocurrency segment in Switzerland, major retailers have started to leverage the growing sector to sell gift cards to consumers who are looking for ways to buy Bitcoin. For instance,

• According to Swiss daily Tages-Anzeiger, Manor, one of the largest departmental store chains in Switzerland, is selling Bitcoin gift cards in all of its 59 stores nationwide. Another retail giant, Valora, is offering consumers Bitcoin gift cards in its kiosks across Switzerland. Notably, Vardex, a cryptocurrency financial services firm, developed the Bitcoin gift cards, which are being sold by major retailers in Switzerland.
• With the launch of these gift cards coming in the midst of the growing crypto and blockchain industry in Switzerland, PayNXT360 expects more retailers to join the Bitcoin gift cards bandwagon over the next four to eight quarters in the country. This will subsequently boost the growth of the overall gift card industry in Switzerland from the short to medium-term perspective.

While the merchant adoption of Bitcoin is still growing, consumers owning Bitcoin gift cards have limited options to spend their gift cards. They can either redeem their vouchers through an exchange service or sell the Bitcoin amount on the gift card using one of the 70 ATMs operated by Vardex. However, as more and more merchants start adopting Bitcoin as a payment method, PayNXT360 expects Bitcoin gift cards to gain further adoption in the country.

Growth in the e-commerce sector supporting the rise of the gift card market in Switzerland

The e-commerce market in the country is recording double-digit growth and is expected to continue its upward momentum over the next four to eight quarters. In 2020, the value of goods ordered online increased by more than 25%.

The strong growth of the e-commerce industry has been largely driven by the global pandemic over the last few quarters. More and more people have chosen to shop online because of the Covid-19 fear. With PayNXT360 expecting the shift in consumer shopping behavior to persist even in the post-pandemic era.  The growth in the e-commerce industry is expected to support the adoption of gift cards among consumers in Switzerland from the short to medium-term perspective. Consequently, supporting the growth of the overall gift card industry in the country.

Mergers and acquisitions for launching gift card and loyalty programs are rising in Switzerland

As more and more businesses are turning to gift cards and loyalty programs to deal with the Covid-19 enforced challenges, mergers and acquisition activities are picking up pace in Switzerland. For instance,

• In February 2021, Givex, a cloud-based customer engagement solution, acquired Pi Cash Systems, a leading Swiss provider of point-of-sale systems, in Switzerland. Through the acquisition of Pi Cash Systems, Givex aims to launch new products such as gift cards and loyalty programs, among others in the country. The launch of new products, including gift cards, comes on the back of growing demand from businesses for such solutions in Switzerland.

Going forward, PayNXT360 expects more firms to launch gift card programs in Switzerland, which will keep supporting the growth of the overall gift card market in the short to medium-term perspective.

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