Digital gift card platform On Me has launched a five-year partnership with Mastercard.
The company announced the collaboration Wednesday (Dec. 4), along with the news that it had raised $1.7 million in pre-seed funding, money it will use to expand its retailer partnerships.
“Advancing the industry from magnetic swipe technology pioneered in the 1980s to sleek, modern mobile wallets, with Apple Pay and Google Pay integration, On Me provides consumers with the ability to purchase and checkout seamlessly with just a few taps on your phone,” the company said in a news release.
The company says its efforts are aimed at providing a more vibrant gift card experience, while also keeping plastic cards out of landfills and preventing fraud.
On Me pointed to data from the Federal Trade Commission (FTC) showing that gift card-related fraud was a $217 million problem in 2023.
The FTC issued a warning about gift card scams last year, telling consumers that would-be fraudsters “might say to put money on an eBay, Google Play, Target or Apple gift card. They might send you to a specific store — often Walmart, Target, CVS or Walgreens. Sometimes they’ll tell you to buy cards at several stores, so cashiers won’t get suspicious.”
The company said it helps prevent this by offering two-factor authentication across all transactions and on-device encryption on mobile payments.
“Traditional gift cards have fallen behind in the digital age,” said Darragh Meaney, CEO of On Me. “We’re reshaping this space with experiences that are not only highly personalized but also built for seamless integration with modern smartphones.”
In other news from the gift card world, PYMNTS spoke recently with Darren Abbott, chief brand officer at Hallmark, about how the integration of digital gift cards with physical greeting cards — from the company’s Gift Cards Greetings offering — improves the customer experience.
“We know consumers want solutions that blend tangible products with digital capabilities to solve a common need in a new way,” Abbott said.
“Nothing compares to the feeling of opening a greeting card with a heartfelt message, and when combined with a surprise digital gift card that caters to the recipient’s favorite store, restaurant or retailer, it’s truly a gift that’s perfectly suited for anyone,” he added. “With Gift Card Greetings, senders can easily select a gift card that they know their recipient will love, all while delivering it in a meaningful, personal way with a greeting card.”
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