Virtual Prepaid Cards Gaining in Popularity
As the prepaid card sector continues to develop, physical retailers are looking to accommodate the rising popularity of virtual gift cards. Mercator Advisory Group’s Ben Jackson says virtual gift cards accounted for 5 to 10 percent of total gift card sales in 2013, up from about 2 percent in the previous three years. Jackson attributes the rise to better marketing and positioning of virtual gift cards on websites. Physical gift cards are already a staple for most brick-and-mortar retailers, but several, including convenience stores, are looking to incorporate virtual gift cards as well. Consultant Richard Crone says there are already some convenience store chains where virtual gift cards account for 50 percent of total in-store gift card purchases. Strategies include selling virtual gift cards, in the form of a scannable purchase poster or token with a quick response code, alongside plastic cards or as a backup when the physical cards are out of stock. Another method is offering private-label closed-loop gift cards that can be purchased through a store’s mobile app.
From “The Prepaid Category Continues to Evolve”
Convenience Store Decisions (05/05/14) Odesser-Torpey, Marilyn