Blackhawk Network partnerships with several companies to expand the gift card programs
The demand for gift cards is experiencing significant growth due to the global pandemic's limited usage of cash payments. Key companies operating in this space use various gift cards as a development strategy for promoting their businesses, increasing brand awareness, attracting new customers, reducing frauds, and improving their business sales. Moreover, technological innovations in gift cards and mergers & partnerships of various payment companies are driving the growth of the gift card market.
Blackhawk Network, a global branded payments provider, is actively involved in various partnerships with airline, retail, NFT, blockchain, and apparel companies. For Instance,
- In June 2022, Blackhawk Network announced the partnership with airlines to reduce their expensive air mile challenge by offering gift card options to consumers on which they can spend their loyalty points. Generally, customers use air miles to receive alternatives such as free flights, seat upgrades, and items including toasters and kettles. With the Blackhawk Network partnership, airlines can offer a better alternative so that they can trade their loyalty points for extensive gift cards. In addition, airlines can improve customer loyalty with this forward movement of providing gift cards.
- In May 2022, New Seasons Market, a US-based chain of grocery stores, partnered with Blackhawk Network to improve the online gift card programs for its West Coast neighborhood grocers, New Seasons Market, and New Leaf Community Markets. With the help of Blackhawk Network's e-commerce services, company-branded physical and digital gift cards are now available at company websites, newseasonsmarket.com and newleaf.com. Thereby enabling customers a seamless e-commerce experience that delivers gift cards to their doorsteps or inboxes. This partnership helps New Seasons Market's gift cards to reach a broader range of customers with a user-friendly experience.
- In February 2022, Kroger, a US-based chain of supermarkets and multi-department stores, expanded its partnership with Blackhawk Network to add Visa and Mastercard prepaid cards through Velocity B2B software as a service (SaaS) platform. This partnership is intended to fuel the growth of the Kroger B2B gift card offer.
- In December 2021, Blackhawk Network announced launching its "Best City" gift card series that support small and medium businesses (SMEs) in local communities. With the Best City gift card suite, local small & mid-sized businesses of retail and restaurants can accept the card in the form of payment. The merchants interested in participating in this program can sign up for free and attract new consumers with cost-effective marketing.
- In June 2021, UNTUCKit, an apparel startup, partnered with Blackhawk Network to enhance its gift card program for malls and supermarkets. Through this partnership, Blackhawk will issue UNTUCKit's physical and digital gift cards in brick and mortar stores and online gift card malls. The gift cards ranging from US$ 25 to US$ 250 will be available at UNTUCKit's 86 retail stores and as well as on its website. In addition, Blackhawk Network will handle the customer service for the gift card program. As people return to work and social gatherings like pre-pandemic level, gift cards in the apparel segment are experiencing a spurring growth in the coming years.
According to Blackhawk Network data, online gift card programs have witnessed near triple-digit growth in the last two years. Hence, Blackhawk Network is partnering with various companies to provide consumers with easy gift card access and a user-friendly experience. Additionally, consumers' increasing interest in digital gifting options, easy availability of various gift cards, and businesses switching from physical gifts to gift cards for rewards, promotions, incentives, and charitable distributions are propelling the revenue growth of the gift card market.
To know more and gain a deeper understanding of the gift card market in the United States, click here.