Discover fun facts and the history of gift cards. Learn how iRewardify helps businesses with flexible and rewarding gift card solutions.
When you meet someone for the first time and tell them that you sell gift cards, you might get a puzzled look, only for them to smile when they realize what you’re talking about. Oh, I love gift cards. The typical reaction is one of enthusiasm, as gift cards have become a key part of our lives, providing both the giver and the recipient with convenience and flexibility.
A gift card is essentially a prepaid card that can be used to purchase goods or services at a specific retailer or across multiple brands, depending on the type of card. Whether it’s a gift for a special occasion or a reward for completing a task, gift cards have gained popularity because they simplify the process of gifting.
Before gift cards became mainstream, there were phone cards. These prepaid cards allowed users to make long-distance calls and, in many ways, laid the groundwork for the development of modern gift cards.
The evolution from paper gift certificates to plastic gift cards began around the year 2000. Previously, customers would receive paper certificates, which often came with limited flexibility. With the introduction of plastic cards, it became easier for businesses to track and activate purchases, transforming the gifting industry forever.
There are two main types of gift cards: closed loop and open loop.
These gift cards can only be used at the specific retailer or brand they are associated with. For example, a Starbucks or Target gift card can only be used at those stores.
In contrast, Open Loop gift cards (such as those by Visa, Mastercard, or American Express) can be used almost anywhere, making them more versatile for the recipient.
Gift Cards are used in two main contexts: business-to-consumer (B2C) and business-to-business (B2B)
Since the introduction of digital gift cards in 2013, the industry has taken gifting to a new level. These digital versions are convenient, often delivered instantly via email or text, making them a popular choice for last-minute gifts.
The mag stripe technology (used for activating gift cards) was invented in 1928! However, it wasn’t until the late 1960s that it became widely popular in San Francisco.
In 1994, Gap, Sears, Hollywood Video, and Blockbuster Video were among the first retailers to launch gift card programs outside their stores.
Interestingly, gift cards have been proven to be recession-proof. During the financial crisis in 2006/2007 and even during COVID-19, companies saw the value in distributing gift cards to raise morale and incentivize productivity.
Gift cards aren’t just popular in the U.S. By 2030, it’s projected that over $2.3 trillion will be spent on gift cards globally! Many countries around the world have embraced them due to their ease of use and acceptance.
iRewardify offers businesses innovative ways to integrate gift cards into their incentive programs. Whether it’s boosting employee morale or rewarding top performers, iRewardify has a solution for every need.
One of the standout features of iRewardify is its Professional Services offering. This service includes technology solutions such as redemption platforms, gift card tracking, and QR technology that provide businesses with valuable data insights.
With access to gift cards from over 50 countries and offering brands like Target, Apple, Starbucks, Macy’s, and 1000s of others. iRewardify ensures there is something for everyone.
iRewardify has built custom solutions for brands like Seiko to solve redemption issues, offering personalized dashboards that track all redemption data. This is part of their commitment to delivering value to their clients. In September, we were tasked with building a web application for the largest fashion brand and delivering the eCodes on behalf of their enterprise clients. They need a secure way to deploy e-GiftCards for their clients. iRewardify provided a safe and secure solution.
Gift cards have remained resilient through various economic downturns. Companies used them as tools to maintain employee satisfaction and motivation, even during challenging times like the 2008 recession and the COVID-19 pandemic.
As more brands tie gift cards to loyalty programs, we are likely to see incremental spending in stores and online. This makes gift cards not just a gift but also a driver for increased engagement with brands.
Gift cards are popular for one simple reason: convenience. Whether it’s for a birthday, a thank you, or even as a reward, gift cards provide the perfect balance between personalization and flexibility.
For businesses, gift cards can be a powerful tool to incentivize employees or reward customers. Offering a wide variety of gift card options shows that the company cares about the individual’s preferences and satisfaction.
iRewardify has made significant strides in the B2B gifting industry, helping businesses implement successful gift card reward programs that boost morale and drive engagement.
Gift cards have come a long way from paper certificates to high-tech digital rewards, and they show no signs of slowing down. Whether used in B2C or B2B contexts, they offer unmatched convenience, versatility, and engagement. With companies like iRewardify leading the way, businesses can ensure their gift card programs are innovative, personalized, and data-driven.
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