Gift cards, both closed and open loop, represent the biggest segment in the prepaid card industry because of their versatility as a gifting and payment solution. Plastic cards, digital, and mobile formats are special catalysts for proliferating brand names and building loyalty. Mobile devices, including the smartphone and tablet, have made it easier than ever to send a virtual gift card.
So, the gift card world has been revolutionized with the rise of digital gifting or egifting. Consumers purchase gift cards on ecommerce sites, or even at storefronts, and send them to friends and family using SMS or email. Accounts can be redeemed using PIN codes, QR codes and could eventually be linked to NFC chips. Until now that has been driven by closed loop gift cards that don’t require the kind of technology scalability at the POS terminal as reloadable cards.