Among the vast variety of prepaid cards, Gift cards became the best present for loved ones since the pandemic hit, and these cards also helped retailers connect with their customers. Market analysts predict that gift cards will grow at a CAGR of 18% between 2022 and 2027. India’s gift card market is classified by card type and end user and is classified as retail establishments and corporate institutions.
How does it work?
A gift card is a prepaid card that is an alternative to a particular cash value of goods and services. The card contains a specific amount of money to be used for various purchases. The Indian market classifies the smart card as open-loop or closed-loop which is preferred by B2B and B2C business types.
An open-loop gift card that is specified to a brand can be used to make purchases from anywhere the particular brand or logo is accepted while a closed-loop gift card is bound to be used for purchases in a specific retailer’s or merchant’s outlets only.
The cards are available in physical and digital forms. Previously plastic cards were preferable over digital ones as they are more realistic to hold but since the rise in technology digital cards are hype as they are just a unique gift code number that can be easily used anytime for any online purchase.
Popularity in the market
The incessant increase in digitalization shaped the gift card market growth by enabling online shopping and payment choices for customers, which led to a spike in the demand for e-gifting or gift vouchers by consumers. The popularity of smart cards is gaining in the health, wellness, and beauty industry, a cause for the inclination of Indian consumers towards health and wellness.
Gift cards are becoming a popular method of engaging employees and partners in the corporate sector. A brand engages its corporate partners with gift cards in order to improve its relationship with them and increase its brand awareness.
Factors responsible for the growth of gift cards
For any corporate firm, customer engagement is necessary, which is now easier to achieve by involving gift cards with the customers.
Another reason for the skyrocketing rise of gift cards among consumers is the convenient transactions that are offered by digital cards.
The distribution of these cards also assists the brands by spreading awareness of the various benefits of the product.
The arrival of the pandemic drove the growth of digitalization at a higher speed, due to which people now prefer the method of online gifting. People now prefer to give gift cards to their close ones instead of giving something unnecessary.
In a new regular by CBDT (Central Board of Direct Taxes), gift cards and vouchers will be exempted from the definition of Virtual Digital Assets (VDA). According to CBDT, they want to ensure that the cards and vouchers which obtain discounts on goods and services will not be subjected to the tax addressed to VDAs like cryptocurrencies or non-fungible tokens.
Why choose a gift card?
Apart from spreading joy to the employees and clients, buying gift cards and vouchers may cater benefits to the business as well.
Save from budget
For any company or organization employees are important contributors to its success. It is indisputable to provide them with few benefits that are other than just cash so that they can have a gift for themselves rather than spending the extra money on their bills.
Saves time and reduces the expense
Purchasing a bulk of these cards will naturally reduce the expense of buying, packaging, and distributing physical gifts also the company can benefit from the discounts that they might avail as a whole.
Personalize the cards as the company’s design or policies, so that employees can feel appreciated for the efforts they gave in for the company and leave a mark on employees, their family, and their friends. It’s a brilliant approach to add value incentivizing rewards programs within the company using branding gift cards.
Flexible to use
These are a better alternative to cash or credit cards as one can buy a variety of products from anywhere and anytime or within any specified time limit.
A helping hand by BankIT
Use BankIT gift cards that are instant to obtain and can be presented to anyone for different occasions with accessibility to every offline and online store.
Apply for a virtual card which is then utilized effortlessly for any kind of online purchase, with the help of BankIT’s application.
Get a physical gift card in the form of an issuable kit that has been carefully selected and designed to look like a gift. The card is acceptable for every POS device, at any PAN India outlet as well as for online purchases.
Customize the benefits of the smart card as per the company’s policies and requirements.
Create a brand imprint with BankIT’s service of BYOCP (Build Your Own Card Program).
Feel safe by presenting this one-time loadable gift card to your friends, employees, and loved ones.