Usage of gift cards is witnessed to increase through the transportation sector

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Innovation in the transportation sector has been long needed and gift cards are turning out to be an easy and convenient way for the sector to attract several customers. Gift cards not only help the customer to rely better on their services but also ensure there is continued usage and loyalty. Thus, over the past four to eight quarters, innovative launches and partnerships are witnessed in the transportation sector to attract more customers. For instance, 

• In October 2022, a global fintech service provider, Givex announced to enter into an innovative partnership with Cittamobi's digital wallet to launch a gift card marketplace inside the app. The main objective behind this partnership is to boost the sale of gift cards for iFood, a Latin American online food delivery service. Notably, these iFood gift cards are processed by Givex and now through this partnership, these gift cards can be distributed to several partners through the GivexHub inside the Cittamobi digital wallet. Givex, through GivexHub, had been selling iFood gift cards at more than 90,000 points of sale, and also connecting with products to more than 70 million users. 

Notably, Cittamobi is a Brazil-based digital wallet that helps its user to pay through their mobile phones for their bus tickets or buy credit for their metro cards in several cities of Brazil. Consequently, the partnership with iFood through GivexHub will enable Cittamobi to offer its users a wider choice of payment such as digital gift cards. Since Cittamobi caters to around 300 cities in Brazil and receives more than 16 million downloads. This new partnership is expected to increase the sale of iFood gift cards through Givex over the longer run. Specifically, this mobility app has the aim of expanding its customer base, particularly in Rio de Janeiro, where it started to operate currently.

Furthermore, this partnership will easily capture Cittamobi's huge number of transit users, who are in general very difficult to reach, and consequently, help in becoming more than just a payment method for transit. Thus, PayNXT360 anticipates, this new gift card marketplace which started with meal gift cards initially will be able to attract significant customers in Brazil over the medium to long-term perspective.

Moreover, with the widespread usage of gift cards, several transit providers are using this tool to inject convenience through several modes of payment. For instance,

• In January 2022, Hele-On, County of Hawai’i Mass Transit Agency introduced several new advancements in its platforms such as trip planning, mobile fare payment, and many more. For the purchase of tickets, Hele-On entered into a unique partnership with Moovit, a mobility-as-a-service app in January 2022. Notably, this partnership helps to incorporate the Token Transit app into the Moovit app, thereby helping the passenger to purchase their fares through a gift card or a credit card from Visa or Mastercard. Consequently, PayNXT360 anticipates the introduction of gift cards will not only help in improving the overall quality of service but also attract more casual users who can make greater use of public transit services on Hawai’i Island. 
• Since gift cards have always served as an efficient tool to retain loyal customers, transportation app providers are introducing gift cards as a part of their loyalty program strategy. For instance, in October 2022, a unique app for truckload carriers and brokers, Trucker Tools, announced to launch of an innovative loyalty rewards program for its independent truckload owner-operators and also small-truckload fleets. The United States-based Trucker Tools has been working as a platform for the transportation industry for trip planning, and shipment visibility since 2013.

Notably, this program can be accessed by truckload operators which around 2 million users, including independent operators and smaller fleets of 10 trucks or less. Importantly, the platform strategized to launch this loyalty program on Trucker Tools to engage truckers with more preferred brokers. Since truckers face similar rates from multiple brokers, this loyalty program will help the platform to attract more truckers through monetary incentives. Trucker Tools Driver Loyalty Program rewards truckers through points and also instant digital gift cards that can be redeemed at more than 200 retailers. Furthermore, the program also states that the app will reward the driver for the online transactions they have been doing on the Trucker Tools app. 

Thus, this loyalty program will not only encourage driver participation in the program but also increase the usage of gift cards in the transportation sector. Consequently, PayNXT360 anticipates with the world going digital, harder-to-reach audiences will be easily reached by several sectors holding the hands of gift cards, thereby seeing growth in their businesses. 

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