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With the economy continuing to struggle, the use of incentives to retain high-performing employees and valued partnerships is a major strategy for many companies.
The holiday season presents a perfect opportunity for businesses to strengthen employee and partner retention efforts. One of the easiest and fastest-growing ways companies can deliver thanks is by presenting virtual cards.
It’s no surprise that the global virtual gift card market is estimated to grow by $420.49 billion, with a CAGR of 20.13 % between 2021 to 2026, according to an Infiniti Research market study. The rapid digitalization of currency, the increased usage of contactless payments via tap-and-pay physical point-of-sale devices and eCommerce, and the convenience factor virtual cards offer are key reasons why this digital alternative to traditional physical gift cards is growing rapidly.
Companies and consumers alike have realized that obtaining and sending physical gift cards can be time-consuming and expensive, especially if you have a large number of recipients on your list. The cost typically incurred by a company looking to present physical cards includes having an additional budget for packaging and shipping, and should the package get lost or stolen, then the cost to reship comes into play.
An unfortunate reality today is that logistics and shortages are creating unexpected delays in shipping and handling, even with drop shipping. Sending physical gift cards to employees and partners is even more expensive and complicated for businesses with a global presence.
Sending a virtual gift card directly through email is more efficient and cost-effective. An advantage of using virtual cards for your business is that the cardholder can use their card immediately. No need to wait for a traditional card to be sent in the mail. As soon as the card is created and funds loaded, the user will receive an email with instructions on retrieving their new card details.
Other benefits of offering virtual gift cards to employees, team members, or partners include:
Flexibility and choice
Offering a virtual gift card, supported by major networks like Visa and MasterCard, ensures your recipients receive the gift of choice. This means they can reward themselves with whatever is most important to them. With no limitations, each recipient can choose a gift that’s perfect for them. The flexibility of virtual cards also easily allows recipients to donate to charitable organizations.
Support Sustainability Values
The rapid digitization of the world is supporting growing interest and focus on sustainability. Companies are becoming more aware of consumer interest and demand for sustainability and transforming and innovating their businesses to stay relevant. In fact, 85 percent of consumers have shifted toward being more sustainable during the past five years, according to a recent survey by Simpon-Kucher strategy and marketing agency. A virtual gift card has a small carbon footprint, and unlike physical cards and gifts that may not really be on anyone’s wish list, won’t end up in a garbage fill.
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