Gift Card, a Modern Form of Cash Envelopes That Can Be Used In a Wide Variety of Purchases
A gift card (also known as a gift voucher) is a popular method of
gifting, which allows the intended recipient to purchase the product or a
service of their choice using the cash value on the card. A gift card allows
users to receive products or services from malls, shopping centers, showrooms,
etc. Gift cards make transactions easier for the user and also reduces the cost
of printing bills, as well as the system more secure and traceable than cash
payments. For example, dome gift cards have a PIN for the transaction and even
if it is misplaced, it will not be an issue as it can be blocked.
Previously, supermarkets or large department stores were the only
retail types that offered gift cards. However, now coffee shops and restaurants
have also started offering gift cards through universal gift card providers. For
instance, Disneyland and movie theatres offer gift cards through card providers
and this trend is growing in developed countries, such as the United States and
the United Kingdom. Moreover, in Korea, gift cards have gained importance as a
payment method during the last five years due to the widespread acceptance of
gift cards by individual and corporate consumers. A South Korean conglomerate
offers its gift cards through its mobile application.
A gift
card stores a specific amount that can be used in a wide variety of
purchases. These cards can be classified into open- and closed-loop cards
and can be issued by banks and retailers as a developmental strategy used to
attract new customers, strengthen businesses, improve sales, increase brand
awareness, and reduce fraud. Gift cards are available in both digital form
and plastic-type. A gift card is a modern form of cash envelopes that were
given on special occasions such as birthdays, marriages, etc. as they are
intended for entertainment, dining, shopping, and other expenses. The growing
use of e-commerce makes it easier for users to track, manage, and redeem gift
cards.
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