PayPal’s Digital Gift Card Play

With research showing time and time again how popular gift cards are for the holidays, there seems to be no better time for PayPal’s latest announcement.

The company announced Friday (Nov. 14) that it is teaming up with POS technology firm InComm to offer consumers easier and more ways to purchase and digital gift cards through their mobile phones.

With PayPal using InComm’s digital platform InComm Digital Solutions (IDS), online shoppers will have access to gift cards from more brands and be able to seamlessly use those cards themselves – or gift them to others.

The gift cards will be available through PayPal’s Digital Gifts store and on eBay, meaning consumers will have access to hundreds of top brands as gift cards more frequently become the most-requested gift for the holidays.

InComm wants to take advantage of that trend. “Consumers are increasingly adopting digital cards for gifts and self-use and looking to easily purchase and store these cards on their mobile devices,” IDS General Manager Mike Fletcher says. “Collaborating with PayPal is helping drive adoption of mobile payments by making it easier than ever for consumers to do this.”

Fletcher says retailers will reap the benefits of the joint venture, too, adding that the partnership is “empowering brands to capitalize on rising mobile says and loyalty opportunities.” Stores that partner with IDS, PayPal and its owner (for now) eBay will have access to more consumers and encourage brand loyalty, PayPal and InComm say.

While the partnership arrived just in time to take advantage of the holiday shopping season, PayPal and InComm aren’t likely to part ways after New Year’s. PayPal says utilizing InComm’s platform will only accelerate PayPal’s mobile payments technology.

“PayPal’s mobile consumers will benefit from future mobile payment capabilities, driven by PayPal’s innovation and integration to the IDS platform,” the companies say.