Digital wallet company PayPal is expanding its digital gift card offerings by teaming up with CashStar, an omnichannel digital gifting solution platform that distributes to a large network of top brands including Best Buy, Dunkin’ Donuts and Sephora.
PayPal is integrating the CashStar-powered eGift cards, which can be purchased with a mobile device and sent to the recipient’s email or home address, to participating retailers in the PayPal Digital Gifts Store and the eBay marketplace. The partnership is also set to benefit brands that use the CashStar platform, as they will now have another distribution channel to sell their eGift cards on.
“Gift cards are an increasingly important component of the retail space,” said Thad Peterson, senior analyst at Aite Group, Atlanta. “According to the NRF, the average shopper will buy four gift cards this year.”
“As mobile and ecommerce continue to grow at a faster pace than general retail, the importance of digital gift cards increases as well.”