Electronic prepaid cards give companies a new way to provide incentives to their employees and offer retails a new distribution channel for their prepaid and gift cards.
From Incentive Magazine:
“We don’t do much in the way of catalogs anymore,” says Dennis Borst, president and chief operating officer at the Patriot Marketing Group, which operates as Foot Locker Gift Card Sales. “We have over 2,000 stores, plus the website, and we’ve found that people really like to take the gift card into the store to see all the brands, all the deals, and all the colors. In-store redemptions make up more than 90 percent of our total redemptions.” He adds, “This business has changed. I’ve been around since the very beginning of gift certificates more than 25 years ago, and the biggest change of all has been in the last three years with the introduction of digital eCards.”
Digital gift cards still remain a small part of the overall prepaid card business, but as customers, retailers, and business partners find new uses for them, Mercator expects that this channel will continue to grow and pick up market share.
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