In today’s fast-paced world, gift-giving has become a convenient and versatile practice. Among the many options available, gift cards have emerged as the go-to choice for many. These small, plastic tokens offer a world of possibilities to the recipient, allowing them to choose what they want or need. While gift cards seem like the perfect solution, they do come with a hidden challenge: they often get lost and go without redemption.
Gift cards, while convenient, suffer from a growing issue affecting both those who give and receive them: the dilemma of lost and forgotten gift cards.
Often, recipients stow away these cards in their wallets or purses, unintentionally overlooking them amidst the accumulation of their belongings over time, resulting in these once-considerate gifts going untouched. Expiration dates on specific gift cards only worsen the situation, placing recipients at risk of forfeiting the card’s value.
Furthermore, even when recipients use a portion of the gift card’s value, a significant fraction often remains unused.
In unfortunate scenarios, the closure of retailers or store locations can make it impossible for recipients to redeem their gift cards, adding to the frustration of this prevalent issue.
To adapt to the evolving preferences of Gen Z shoppers when it comes to gift-giving, the greeting card company Hallmark is embracing modern avenues such as digital payments and mobile apps.
In late August, Hallmark forged a partnership with Venmo to introduce over a dozen co-branded physical greeting cards. These cards, accessible online and at Hallmark, CVS and Walgreens outlets, feature a QR code directing users to Venmo.
The giver utilizes the code to transfer funds to the recipient while the recipient scans the code to receive the payment. These cards are available for purchase at $4.99 each and come in a range of themes, including “Happy Birthday” and “Best Christmas Ever.”
Hallmark’s partnership with Venmo is their latest endeavor to connect with a younger customer base. Additionally, this collaboration aligns with insights from PayPal, revealing that 78% of Venmo users frequently utilize the platform for gifting money to friends and family.
Moreover, this builds upon a prior initiative implemented two years ago when Hallmark started integrating personalized videos into its physical cards through QR codes. It also introduced a mobile app that empowers customers to customize cards directly on their smartphones.
DoorDash, the on-demand delivery platform, has teamed up with Paytronix, a loyalty and ordering technology provider, to enable restaurants to use its service to create loyalty programs and facilitate payments through gift cards.
Through the Paytronix integration, customers ordering from a DoorDash restaurant partner using its Storefront online ordering system or Bbot order and pay-at-table technology can select “gift card” as their payment option during checkout.
Customers have the option to merge up to five gift cards to cover their subtotal, taxes, and, if applicable, an optional driver tip for delivery. Any remaining amount can be settled using alternative payment methods such as credit or debit cards.
Once customers visit a restaurant using Storefront or Bbot for order placement, DoorDash encourages them to either log in to their existing account or join the restaurant’s loyalty program.
At checkout, customers have the choice to utilize any available rewards, and once they’ve completed an order, they will receive an order confirmation detailing the number of earned loyalty points. Retailers can also reconnect with enrolled loyalty program members by sending personalized offers for upcoming orders.
Based on aggregated Storefront data, the average order value is 50% higher when paid with gift cards compared to orders paid using alternative methods. Moreover, orders where customers redeemed loyalty points averaged approximately 30% higher in value compared to orders without loyalty redemption.
Additionally, Costco is phasing out plastic and providing newcomers with a complimentary $30 digital gift card.
The gift card promotion applies to individuals who become either Executive or Gold Star members upon joining.
To obtain the gift card, Costco has specified that customers must furnish their email addresses and establish auto-renewal during the sign-up process.
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