General Understanding of Gift Cards

This section offers an in-depth overview of gift cards, focusing on key concepts such as types of gift cards, their functionality within the economy, and related market dynamics. It covers different card types, consumer behavior, benefits for businesses, and industry challenges. Future discussions in this section will address:

• Open Loop vs. Closed Loop Gift Cards: Differences in card types, financial setups, risks of fraud, and compliance.
• Common Use Cases: Variations in personal vs. corporate use, business-to-business (B2B) vs. business-to-consumer (B2C) applications, seasonal trends, and new patterns.
• Consumer Purchase and Usage Patterns: Insights into consumer buying habits, decision-making, balance handling, and storage preferences.
• Consumer Pain Points: Challenges like balance checking and redemption issues faced by consumers.
• Business Benefits: Advantages for businesses, such as revenue from float, enhanced customer retention, and opportunities for data collection.