Technology has inevitably changed the way one perceives reality as well as one’s interpersonal relationships. People may switch between the real and virtual worlds with a phone tap! Everything basic has digital renditions today, and gift cards are no exception. Therefore, knowing what digital gift cards are and their variants can be of tremendous use to you in the future!
Online gift cards are the e-version of monetary presents. These gift cards, also familiar as vouchers, e-gift certificates, or tokens, can be sent to the recipient’s email inbox or mobile wallet. Thus, online gift cards are convenient to use as one can access them through a phone.
These digital vouchers or gift cards have a specific monetary value that allows the recipient to claim such an amount at specific banks or stores that have issued these cards. These vouchers have expiry dates, beyond which one cannot redeem them.
Many people are now using online gift cards to surprise a friend or buy food, beverages, or objects for someone special. Many retail stores offer these online gift cards to attract more and more customers. They are also provided to the employees of the companies as a token of appreciation or motivation.
Advantages of Using These Gift Cards
1. Freedom of Choice
These online gift cards have a variety of benefits. They give the freedom of choice to the recipients. Digital shopping is an ongoing trend, and digital gift cards allow one to get incentives after making purchases.
2. Increasing Consumer Base for Businesses
Online gift cards also allow companies and businesses to reach consumers worldwide, thus increasing their consumer base. They can be given to employees, teammates, partners, or customers without hindrance.
3. Comprehensive Data to Understand Consumer and Market Sentiment
The added advantage to the business is that companies can track the utility of online gift cards. This allows them to understand consumer behaviour and improve their market strategy.
One can also have a MasterCard, Visa, or American Express card as a digital gift card. These cards function as regular debit cards and can be used for purchasing various goods and services. Now, let’s look at some different types of digital cards.
Types of Online Gift Cards
1. Reloadable Cards
These digital cards can be reloaded or credited and used multiple times. So, the cardholder can buy this gift card and then reload it with a specific monetary value from time to time. Thus, these are convenient to use.
2. Non-Reloadable Gift Cards
These cards cannot be used multiple times as they cannot be reloaded. The gifters often load them with a specific amount, and the recipients can redeem this full amount during a one-time purchase.
3. Open-Loop Cards
These cards are similar to credit cards. Open-loop cards can be redeemed either online or at stores that accept them. They are acceptable at any store as they apply credit card systems for functioning.
4. Closed-Loop Cards
These cards cannot be redeemed everywhere, unlike open-loop cards. One can redeem these cards at specific stores or merchants listed on that card. The best examples of closed-loop cards are Starbucks and Amazon Gift Cards that can be redeemed only at their outlets.
Many retailers offer closed-loop digital gift cards to encourage customers to visit their stores more often and improve brand value. Consumers also make multiple visits to stores to redeem these gift cards.
Online gift cards are no longer limited to people presenting them as gifts. These cards allow consumers to avail of various incentives provided by retailers and help businesses expand their market base. Consider digital gift cards for your next marketing campaign because they are worth it!