The Challenges Surrounding Gift Cards:
🚫⌛ Gift cards are an established method of incentive and reward that have been around for decades and are a great tool for many use cases. However, they create several challenges for recipients, such as limited usability, the risk of loss or misplacement, and the hassle of tracking balances and splitting transactions. Gift cards create other challenges for the sender – like having to pre-purchase inventory, having to pay the full (or slightly discounted) cost regardless of how much of the card is redeemed, regifting and providing little to no visibility into redemption data and behavior. It's time for a more seamless and efficient solution.
Introducing Digital Credits:
📱💳 Digital Credits are the future of digital rewards. Here’s how they work:
A business curates where the Digital Credit can be used – either by choosing merchant categories (restaurants, hotels, gas stations, etc.) or specific merchants or even merchant locations. For example, a Digital Credit could be used 1) at all restaurants, 2) at only McDonalds, Burger King, and Chick-fil-a , or 3) at only the McDonalds on First Street.
The business then decides how much to send the recipient (anywhere between $1 and $1,000) and how long the Digital Credit can be used (anywhere from 1 day to 6 months).
The recipient receives the Digital Credit via a white-labeled email and activates it by entering any Visa or Mastercard credit card or debit card they already have in their wallet or purse. When they use that card to make a purchase at a qualifying merchant, they are automatically reimbursed for the purchase – up to the amount of the Digital Credit sent to them.
If a Digital Credit is sent for $50, and the recipient spends $40, they are reimbursed for $40. The sender reclaims the unspent amount at expiration.
If a Digital Credit is sent for $50, and the recipient makes a $60 transaction, they don’t need to split the transaction or do anything different at the time of purchase. They are simply reimbursed $50.
Benefits of Digital Credits:
Convenient Consumer Experience:
🌟 Instant and digital delivery, ready to use right away.
🌟 Use your preferred credit or debit card for purchases.
🌟 Say goodbye to gift cards and hello to a streamlined experience. ✨💳
Cost-effectiveness:
💰 Reclaim the unspent amount.
💰 No need to pre-purchase physical card inventory. 💵💸
Customization and Control:
🔒 Unlimited ability to curate and personalize.
🔒 Set expiration dates.
🔒Can’t be regifted or transferred.
Visibility and Tracking:
📊 Real-time visibility into activation, redemption amounts, and expiration helps a sender understand which recipients are actually redeeming the rewards.
Liability and Escheatment:
⚖️ Because Digital Credits require a qualifying purchase and expire, they reduce the liability for the merchant.
Conclusion:
Digital Credits are paving the way for a new era of digital incentives and rewards. With benefits for both senders and recipients, Digital Credits offer a significant improvement over traditional gift cards.🔐