Tango Card, a company that aggregates digital gift card services, has raised $4.1 million to expand internationally and increase its sales and marketing programs. The company works with businesses to help them manage their incentives and rewards programs.
Tango Card’s pitch is that it can provide a cost-effective back end to run these services, and offer more engaging rewards to boot — “rewards as a service,” in Leeds’ terminology. When these services have been outsourced in the past, it’s been to large third party companies like Maritz, Carlson and Affinion, which offer gift catalogs rather than gift cards for recognised retailers. These catalogs and the services of larger companies tend to be priced at higher rates than Tango Card offers, and as for the offerings in the catalogs, “people are just not interested in crystal clocks and t-shirts anymore,” says Leeds.
Prepaid cards are an important part of the rewards and incentives landscape because they provide a way to easily deliver value for a specific customer or employee behavior. For incentive program managers, they represent one part of a larger spectrum that includes travel, cash, merchandise, and other forms of recognition.
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