Advanced technologies, together with increasing awareness of various alternative payment methods, have propelled the growth of the gift card industry in the last four to six quarters. High internet penetration and increase in smartphone usage have further boosted this market's growth in the United Kingdom. Consequently, the increasing market opportunity is attracting new-age financial companies to introduce innovative products to increase their market share.
With the rising demand for cryptocurrencies, gift card companies in the United Kingdom have started offering crypto gift cards to target a larger consumer base. These companies are either integrating crypto to buy their products or engaging in various partnerships to target wider market space. For instance, the United Kingdom-based gift card company, GiftChill included buying online gift cards with cryptocurrency in November 2021. After registration on the company’s website, customers can place orders for gift cards and receive gift codes immediately.
The company launched crypto gift cards to grab a more significant market share in the country, keeping the holiday season in mind. GiftChill introduced six popular cryptocurrencies, Bitcoin, Ethereum, Dogecoin, Bitcoin Cash, Litecoin, and USDC, on the company’s website to enable consumers to buy gift cards.
The customer needs to enter minimum information when making a purchase and complete the checkout through Coinbase, a cryptocurrency exchange platform. Moreover, the introduction of crypto has helped the company eliminate any credit card usage on the website.
Since GiftChill did not integrate with any credit card companies or PayPal, it could keep the overhead cost low and thus keep the price of the gift cards on the lower side, helping customers save from each purchase. The company also plans to introduce daily special offers on their website to attract more consumers.
According to PayNXT360’s Q3 2021 Global Gift Card Survey, the gift card industry in the United Kingdom is expected to grow by 10.9% on an annual basis to reach US$8.5 billion in 2021. Therefore, it can be expected that gift card companies are likely to introduce more innovative products to increase their market share from a medium to long term perspective.