First Data announced today it has agreed to buy Gyft, a mobile gift card provider, for an undisclosed price.
The global leader in payment technology and services solutions, First Data, has taken a key step to provide consumers with spending flexibility and help businesses grow through the acquisition of Gyft Inc., the Silicon Valley-based company, that entered the $100 billion gift card market in 2012 and pioneered the concept of a mobile wallet for gift cards. Gyft is the leading digital platform that enables consumers to buy, send, manage and redeem gift cards using mobile devices. Financial terms of the deal were not disclosed. The transaction is expected to close next month, pending Gyft shareholders’ approval.
The deal will give First Data another tool to help its merchants offer mobile cards and prepaid for a digital future where plastic is no longer the dominant form factor. Physical gifting will always be around, and physical gift cards likely will be as well. But as people do more and more with their mobile devices, merchants need to have a way to engage with customers through this channel that leads directly into consumers’ pockets.
Overview by Ben Jackson, Director, Prepaid Advisory Services
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