Now That Customers Can Resell Gift Cards, Should Retailers Worry?

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New research from Mercator Advisory Group examines the secondary market for closed-loop gift cards

Gift card recipients are not always happy with the cards they receive. With Internet gift card exchange and resale sites, they now have additional options for what to do with the cards.

A new research note from Mercator Advisory Group, titled Customers Reselling Gift Cards: Benefits for Retailers, provides an analysis of the secondary market for retailer-issued gift cards. The research note examines the size of the market, major players, and actions that issuers should consider if they wish to benefit from opportunities in this new market.

Retailer gift cards are one of the most popular gifts in the United States. Unfortunately, givers don’t always choose the gift cards their recipients would prefer. The growth of gift card resale sites has solved this problem in a way that can reduce the incidence of fraud, breakage, and perhaps more important, disgruntled customers.

"Gift card recipients are not always happy with the cards they receive. With Internet gift card exchange and resale sites, they now have additional options for what to do with the cards," Ben Jackson, Director of Mercator Advisory Group's Prepaid Advisory Service, and author of the report, comments.

Highlights of the research note include:

  • Data on U.S. consumer awareness and use of gift card resale sites
  • Brand implications
  • Business models of resale sites
  • Brief descriptions of specialty sites participating in the secondary gift card market
  • Recommended ways for retailers to benefit from gift card resale sites

This research note is 8 pages long and has one exhibit.

Companies mentioned in this research note include: Blackhawk Network, CardCash, eBay, GiftCardBin.com, GiftCardGranny.com, GiftCardRescue.com, inComm, MonsterGiftCard.com, Coinstar Exchange, Raise.com, Target, and Walmart.

Members of Mercator Advisory Group's Prepaid Advisory Service have access to this report as well as the upcoming research for the year ahead, presentations, analyst access, and other membership benefits.

Please visit us online at http://www.mercatoradvisorygroup.com.

For more information and media inquiries, please call Mercator Advisory Group's main line: (781) 419-1700, send email to media@mercatoradvisorygroup.com.

For free industry news, opinions, research, company information and more visit us at http://www.PaymentsJournal.com.

Follow us on Twitter @ http://twitter.com/MercatorAdvisor.

About Mercator Advisory Group
Mercator Advisory Group is the leading independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world's largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal PaymentsJournal.com.

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Karen Yetter
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