Massive increase in the adoption of virtual Gift Cards: Qwikcilver report
The Qwikcilver data reveals that E-Gift Cards are dominating the Gift Cards segment in comparison to physical Gift Cards.
As appeared in IndianRetailer.com .
Qwikcilver, an end-to-end service provider in Gift Card space has tied up with over 150 brands like Kalyan Jewellers, Tanishq, Taj Hotels, PVR Cinemas and Big Basket to woo consumers back to the stores. E-Gift Card category has shown tremendous growth in recent times, as enterprises and corporates are taking the e-gifting route to engage with their employees and partners to minimize contact in the wake of COVID-19.
Sharing his thoughts, Kumar Sudarsan, Chief Executive Officer, Qwikcilver Solutionssaid, “There is no denying the fact that the pandemic outbreak and the subsequent lockdown has impacted businesses across diverse industry verticals. As businesses reopen, they are on the lookout for newer ways to win customers back to their stores through innovative products and services. E-Gift cards as a category is going to be crucial in the times ahead. We are already witnessing consumer behavioral change and a greater adoption of E-Gift."
The Qwikcilver data reveals that E-Gift Cards are dominating the Gift Cards segment in comparison to physical Gift Cards. As much as 96.3% share was taken by E-Gift Cards in FY 19-20, thereby indicating the consumer preference shifting towards virtual gift cards. The gift card spending patterns also shows that 68% of the gift cards are redeemed during the first 30-40 days of its receipt.
On comparing segment-wise average load value of gift cards, the jewellery gift cards hold most amount of value. Kalyan Jewellers has recently launched gift cards in the GCC market. Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers said “We are pleased to announce that Kalyan Jewellers has launched both Physical and Digital Gift Cards powered by Qwikcilver in the GCC market. Empowered with choice and an easy payment method, we see digital gift cards as a great option for both personal and corporate gifting requirements”.
Qwikcilver was acquired by Pine Labs in April 2019 for $110 million. The company today claims to power 9 out of 10 gift cards and e-gift cards sold. It has its presence in India, the Middle East, South East Asia and more recently, having entered the Australia & New Zealand region.