An Introduction to Gift Cards As An Alternative Payment Method

Fintech
1519 VIEWS
Proshare - Facebook Proshare - Twitter Proshare - Linked In Proshare - WhatsApp
Proshare

Monday, August 16, 2021 / 03:25 PM / Sponsored Post by Cardtonic / Image Header Credit: Brand Spur


The first question should probably be to know what a gift card is. If there is a slight possibility that you might not have heard about gift cards, this is your chance.


What is a Gift Card?

A gift card is a prepaid debit card already loaded with money that is available for use for a variety of purchases at a specific brand, website, or restaurant.

As An Alternative Payment Method

Gift cards are digital assets that serve as a different form of payment at physical stores, gas stations, online, restaurants, etc. These are digital cash. They hold monetary values, but the only difference is that you can only redeem it at a designated brand. 

 

Gift cards serve as a classic example of a product of fintech. This is an offspring of the adaptation of finance with modern technology. Gift cards as well as other products or services are here to make life easier for people and also aid the activities of our conventional financial institutions.

 

There are tons of innovative Nigerians who have been limited by resources. Just like the private sector, the government especially in Nigeria, should follow suit in encourage these entrepreneurs with their startups, not only to increase the standard of living of many Nigerians, but also to boost the GDP inevitably. 


Proshare Nigeria Pvt. Ltd.


How Can I Identify a Gift Card?

Gift cards can come in various forms, but in summary, they usually come in 2 major forms which are Physical and E- code.

 

Physical Gift Card: These are plastic cards that are purchased directly from a physical store. Physical gift cards are the safest and the selling price is the best.

 

Ecodes: These are digital gift card codes purchased online and mostly sent to the buyer's email address. For instance, buying airtime online and they email you the pin. Ecodes are not as safe as physical gift cards thereby the selling price is always lower. They are similar because they work the same way as they are all valid gift cards of respective providers. But they differ in money return and safety.

 

Gift cards have distinct designs depending on the brand. Although, they are general features that would be used on the identity cards such as Currency and denomination.

 

Gift Card Currencies

Global brands have an international presence. Meaning their platforms and gift cards are in different countries. For example, GooglePlay, the official app for the Android operating system. Their gift cards come in various currencies such as GBP, USD, CAD, AUD, EUR e.t.c.

The different currencies mean they would have different prices.

 

Gift Card Denomination

The denomination of gift cards come in various forms depending on the brand. Gift cards come in 10,20,50,100,200,500 etc.


What Do I Need a Gift Card For?

Gift cards serve as an alternative source of payment that can be used to make purchases at specific stores or websites.

 

For example, if you own a $100 Amazon gift card, you can use it to purchase $100 worth of items either in an Amazon retail store or on their website.

 

This generally makes purchases easier. Especially if you have a favorite site, brand, or restaurant.


Proshare Nigeria Pvt. Ltd.

 

What are the Gift Card Brands?

They are tons of gift card brands, and still more emerging by the day if you are not acquainted with any gift card here are a couple of popular brands you should know:

  • iTunes Gift Cards
  • Amazon Gift Cards
  • Steam Wallet Gift Cards
  • Walmart Gift Cards
  • Apple Store Gift Cards
  • Google Play Gift Cards
  • eBay Gift Cards
  • Vanilla Gift Cards
  • Sephora Gift Cards
  • Target Gift Cards
  • Best Buy Gift Cards
  • Nordstrom Gift Cards
  • Play Station Gift Cards
  • American Express Gift Cards
  • Nike Gift Cards
  • Onevanilla Gift Cards
  • JCPenney Gift Cards
  • Macy Gift Cards
  • OffGamers
  • Visa


Where Can I Buy Gift Cards?

You are most likely convinced of the essence and functions of gift cards and you are looking for how and where you can purchase these cards. No worries, I would be putting you through on how you can go about it.


Physical Stores

Gift cards are available at your local gas stations, supermarkets, hypermarkets, etc. You can purchase gift cards physically at stores. Look for a local store near you, walk in and purchase the card of your choice.

 

Through The Retailer

On the official website of these brands, there is usually a section allocated for purchasing gift cards for interested buyers. Mostly what you would need to do is put in your location, and a list of stores closest to you where their gift cards are sold would pop up.

 

Through A Third-Party Website

Different websites such as Amazon and PayPal give room for you to purchase hundreds of gift cards online. In Nigeria, you can also purchase various gift cards from famous sites like Konga and Jumia.

 

Is It Possible To Resell My Gift cards? If yes, How?

Yes, it is very possible to resell your gift cards. The fact that the act of purchasing gift cards is not a permanent thing serves as a great incentive. You can get as high as 85% of your cashback when you resell certain gift cards on the right platform to sell gift cards in Nigeria

 

Trading gift cards in Nigeria can be a bit shaky, although it is nice that a lot of Nigerians are taking the initiative to go into these businesses,we all know how the waters can be. There are quite a handful of funny scenarios which occur during this process.

 

It is advisable to trade on a secure platform.

 

Conclusion

Gift cards have proven to be an excellent alternative method of payment other than cash. These digital currencies are versatile. They can either be used at your favorite stores or be gifted to loved ones.


Proshare Nigeria Pvt. Ltd.

 

Related News

1.   Synergy amongst Operators and Regulation Key to Growing Digital Payments in Africa

2.  Teamapt Welcomes 5 Female Engineers to its Women in Tech Internship Program

3.  How Technology Advancement Revolutionalised Fintech: Big Data

4. Huawei, Mastercard, Oracle, and More to Lead the World Financial Innovation Series (WFIS) in Africa

5.   Ecobank Group Launches 2021 edition of its Fintech Challenge

6.   Fintech H1 2021 Review - Recent Regulatory and Legal Developments in Nigeria

7.   DLM Capital Group Announces Winner For its 2021 Pegasus Fintech Challenge

8.  Ecobank Remains Payment Gateway in Africa" - Akinwuntan

9.  Synopsis of the New CBN Regulatory Regime for Payment Services Banks

10. Insights from Happenings in the Fintech Landscape - 230721

11.  Convergence Partners' Latest Fund to Drive Digital Inclusion in Africa

12.  Tradepass to host 7th Edition of World Financial Innovation Series

13.  Chaka to Power Digital Investments for African Businesses, Secures $1.5M in Pre-Seed Funding

14. Nigeria Fintech Week (NFW) announces 2021 Theme: "Sustainability and Ecosystem Building"

15.  FintechNGR Partners with Singapore FinTech Festival ahead of the World FinTech Festival

16. Highlights from the 2nd Edition of FintechNGR's Intercontinental Webinar


Proshare Nigeria Pvt. Ltd.

READ MORE:
Related News
SCROLL TO TOP