Well-rounded point-of-sale solutions that include gift card processing capabilities have a unique value in the current payments landscape. The increased ability to make choices has become one of the biggest factors affecting the ways consumers spend money. Amid growing cybersecurity issues, advancements in technology and omnichannel retail experiences, giving shoppers multiple options in terms of how they spend their money can provide an advantage.
It just so happens that merchant gift cards are a particularly effective alternative to other standard transaction methods in the retail industry. Both independent sales organizations and merchants can add value to their business models by leveraging the following conveniences of gift card programs:
When shoppers have a prepaid balance at a specific store, not only are they more likely to visit that establishment, it's possible they will end up spending more money than they would have otherwise. The Chronicle Herald, a newspaper based in Nova Scotia, Canada, reported that people often spend much more than the amount listed on their gift cards. For example, customers can put their entire balances toward a larger purchase as a way of accessing a substantial discount on something they maybe wouldn't have considered buying before.
Effective merchant gift cards offer an additional layer of security for shoppers who are particularly concerned about POS data breaches. An article in the Times Record, a newspaper based in Maine, suggested that patrons can routinely purchase gift cards with cash as a way to avoid exposing their own personal financial information to hackers.
The best payment solutions make it simple for merchants to incorporate gift card processing into their existing POS infrastructure. These conveniences create new opportunities to add value to the transaction experience, both in the back office and at the checkout counter.