A recent report by Blackhawk and NAPCO Research found that there are major growth opportunities for merchants using omnichannel gift card programs. The growth has been spurred by the rapid adoption of digital payments/contactless transactions as a result of Covid-19. This technology has gone from being an optional offering to a necessity as the new shopping habits consumers shifted to during the pandemic have become permanent behavior. Factor4’s robust omnichannel gift card solution enables digital transactions/contactless payments. It has the same features offered by big brands yet with pricing affordable to small merchants.  

The 2020 Merchant Gift Card Omnichannel Evaluation Report stated that 39% of merchants do not accept NFC mobile payments in their stores and only 4% give customers the option to pay for a gift card purchase by scanning a QR code or barcode with their mobile device. Factor4’s solution enables these features. Retailers have been slow to adopt this technology despite the fact that it offers significant revenue opportunities.

According to the Q4 2020 Global Gift Card Survey, integrating gift cards into mobile apps is expected to record increased investment over the next 4-8 quarters. The Factor4 white label mobile gift card app allow merchants to utilize NFC mobile payments technology via their own branded app. Our apps are available on Apple Pay and Google Pay. They enable gift card recipients to buy merchandise in-store using an eGift card on their mobile device, a key feature of a desirable omnichannel gift card solution.

Online gift card solutions that offer upsell opportunities provide many incentives to consumers. Furthermore, easy and secure checkouts help merchants acquire new customers online. Our online gift card solution offers this functionality. For example, Club Champion used Factor4’s online solution for a gift card promotion where consumers could purchase a $350 gift card online for $275. They sold nearly 4,800 gift cards during the one-week promotion, a 2,700% increase over the same period last year that featured no promotion. The promotion helped Club Champion gain many new customers and generate significant revenue. 

The Blackhawk Network BrandedPay Post-Holiday Report on consumer spending showed a more than 80% increase in digital gift card sales. It also showed a nearly 40% increase in overall e-commerce gift card sales during the holiday season. Sales data from Blackhawk’s partners showed that sales of egifts sold on merchants’ websites in 2020 were up 74% over 2019. Our online gift card solution enabled merchants to generate revenue even while closed due to Covid-19. It also enabled merchants to capture more holiday sales due to the increases in digital gifting. The shift to online shopping is the new shopping norm offering year-round revenue opportunities. 

Factor4’s omnichannel gift card program is a tool for ISOs to retain and attract merchants. It increases stickiness and reduces attrition because of its value-added features. It enables merchants of all types to attract new customers and generate more revenue due to offering this desirable and safe payments technology. Factor4 boasts the most integrations of all gift card providers giving our partners maximum flexibility.

The Gift Card industry in the US is expected to record a CAGR of +9% during 2021-2028. The gift card market will increase from $163,050 million in 2020 to $221,146 million by 2028, according to the Retail Gift Card Market Report. When you factor in this growth along with the appeal of using gift cards as digital payments and the phenomenon of lift- consumers spend 30-40% more than the value of the gift card at redemption- the revenue potential for providing an omnichannel gift card solution is limitless.

Contact us at sales@factor4gift.com or 484-471-3963 to learn more about our Omnichannel Gift Card Solution.

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