The Economy Of Gift Cards: Buying And Selling Gift Cards

Buying And Selling Gift Cards: Today in Nigeria, gift cards have become the perfect gift choice for gift givers and recipients because of their convenience, portability and value. The transition to a more digital society has also reshaped people’s shopping behaviour, stirring a massive adaptation to online shopping, and giving more credence and value to gift cards.

The Gift Card Economy:

The invention of the first gift card ensued by some bottlenecks which projected the invention as inefficient. As with every innovation, the early stage of the gift card was counterproductive.

Apart from the major problem of gift card fraud which took a toll on the industry due to the frail nature of the market, many customers did not utilize the gift cards they purchased. A piece published in the New York Times in 2007 stated that of the $80 billion expended on gift cards in 2006, about $8 billion went unredeemed.

In 2007, they were economists that believed that gift cards were flawed gifts. With the high rate of unclaimed gift cards, it appeared that gift cards were gifts for the issuing company. – Economists suggested that the companies earned most of the money back as “breakage,” or gift cards bought but reclaimed by the companies that issued them. Brand gift cards also resulted in upsells to the companies, making it a double-win for them.

How the Gift Card Economy Has Become an Exchange of True Value

The gift card market wasn’t the most promising one during its early stage just like all products. The gift card market has thankfully survived its early bumps and has now become a thriving economy. The improved performance in the gift card market is largely because people like giving and receiving gifts.

Today, amid e-commerce and mobile revolutions, more people are open to receiving and giving gift cards for the following reasons.

Gift card purchases are now properly planned:

As stated earlier, it is believed that a gift so easily given is fundamentally flawed. However, today gift cards are not given merely because of the little planning required.

According to a 2020 report by Incomm on Gift Cards, 86% of US gift card purchases are planned, and correspondingly, 55.8% of recipients of gift cards state that they received gift cards for brands they liked.

Gift Card Purchases For Personal Use:

Individuals tend to buy more gift cards for themselves than they did in the past ten years. According to research by Black Hawk Network, 33% of the gift cards purchased in 2019 were for the owners.

Some of the reasons individuals purchase personal gift cards are;

Financial budgeting and diplomacy
The convenience of gift card transaction
The safety of gift cards
As an alternative payment method

Conclusion

The gift card market is still a developing one which has been projected to reach nearly $440 billion by 2027. With the desire for comfort, value and safety in gifting and transactions, gift cards are the ideal gifting strategy and also, a very good way to make in-store and online transactions with ease.

Trading gift cards In Nigeria

Buying And Selling Gift Cards

In Nigeria, there are numerous gift card exchange platforms, but only a few can be trusted as there are mediocre platforms and straight-out scammers in the gift card exchange market, there are popularly referred to as “Rippers”. Using a trusted exchange platform is important in making sure you have a splendid gift card exchange experience, this is where Cardvest comes in, the best gift card exchange platform in Nigeria and Ghana.

We have been providing this amazing service since 2017, the customer base we have been gathering since the inception of our platform can testify to how good our service is, you can check online for our review.

How to trade your gift card on Cardvest

The first step is to sign in to your account if you are an existing user. For new users, the first step is to sign up to gain access to the trade function.
On the homepage click on trade now and select the type of gift card you want to trade.
Enter the Amount in dollars. The exchange value will be displayed on the interface.
Proceed to place the order
Set up your wallet by inputting your bank details. You can choose to receive funds in this wallet or directly into your bank account.
Funds will be sent immediately after your gift card is confirmed.
Transfer funds to your local bank account through the withdrawal interface.