GiftRocket Launches Holiday Digital Gift Card Service And Tool To Find True Value Of Physical Gift Cards

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GiftRocket 2.0 Combines Flexibility of Cash with a Highly Personal Gift Experience for Any Gift at Any Business on Any Occasion

GiftRocket is a fast and convenient way to send personalized digital gift cards for any business that won’t get lost or expire.

Today GiftRocket announced GiftRocket 2.0, a fast and convenient way to send personalized digital gift cards by email or Facebook. The new GiftRocket 2.0 allows consumers to redeem their digital gift cards immediately via PayPal, a bank account transfer, or paper check. Unlike physical gift cards, GiftRocket digital gift cards cannot get lost, expire, or go unused and can be used at any business – even those that do not issue physical gift cards.

Strong Growth of Digital Gift Cards

The use of digital gift cards is growing steadily and well- positioned to occupy a bigger piece of the $100 billion overall gift card market. Digital gift card sales are projected to grow at a compound annual growth rate of 29 percent over the next few years, hitting $5.86 billion in 2014 (source: Javelin Strategy & Research, 2010). The cash value of digital gift cards will reach $10 billion in the U.S. in 2015, up from less than $500 million in 2010 (source: Aite Group, 2011). This Holiday season digital gift card sales are projected to increase 1,000 percent between Black Friday and Christmas, helping demonstrate consumer demand for a more convenient and personalized way of gifting than physical gift cards (source: Tower Group, 2011).

True Value of Physical Gift Cards

Today GiftRocket also launched a handy tool that quickly allows consumers to find the true sale value of various retailers' physical gift cards. It may come as a surprise to some that most gift cards are actually worth between 50 – 90 percent of their face value. The primary reasons are that most physical gift cards can only be used at a single, designated retailer and many cards go unused, get lost or expire. In fact, there is approximately $30 billion in unused gift cards, an average of $300 per household, a figure that’s growing by nearly $8 billion per year (source: Deloitte and Touche).

Consumers can quickly find the true sale value of major retailers’ physical gift cards with GiftRocket’s True Value Calculator: http://www.giftrocket.com/gift-card-worth-less-than-you-think

“GiftRocket delivers a fast and convenient way to send anyone a gift that’s highly personalized and won’t get lost or expire,” said Kapil Kale, co-founder of GiftRocket. “Since our digital gift cards are redeemed upfront, senders are ensured their gift won’t go unused and recipients have the flexibility to spend their gift at any business. Our new VIP Concierge service will even recommend gift ideas for senders and recipients.”

GiftRocket Customer Stories

GiftRocket has been growing 70 percent month over month for nearly half a year. Some of the many consumer stories that exemplify GiftRocket’s convenient, personalized and flexible digital gift card service are:

1) Thank-you gifts -- Vivek Patel, founder of Offline Labs – Like many busy businesses, Mr. Patel did not have the time to coordinate and mail last-minute gifts for his clients. Mr. Patel is using GiftRocket to send ‘thank you’ gifts while saving a trip to the store.

2) Restaurant gifts -- Rather than receiving an impersonal gift certificate that could to get lost, unused or expire, Jeff Smith received a “GiftRocket” to Gusto Trattoria restaurant for a special night out in Milford, MA. GiftRocket’s VIP Concierge service recommended and booked reservations to make sure Jeff had a great time.

3) Park outing gifts – Steven Eidelman gave his friend, a newcomer to New York City, a gift experience to Washington Square Park to explore the Village and treat himself to some classic NYU college food.

About GiftRocket
GiftRocket is a new type of gift card that works for any gift at any business on any occasion. It's the most convenient way to send personalized digital gift cards. Funded by Y Combinator and headquartered in San Francisco, CA, GiftRocket was founded by Nicolas Baum, Jonathan Pines and Kapil Kale in November 2010. For more information, visit http://www.giftrocket.com

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Kapil Kale
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Eric Doyle
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