The gift card industry is a booming one and is growing rapidly, despite the notorious cost-of-living crisis. There is data from the members of GCVA that shows that gift card and voucher sales that have been made within the first half of 2023 have increased by 8.4%.
But, now that the industry is proving to be nothing short of successful, the question of standardisation cannot be ignored any longer. Is standardisation of the gift card industry required? The answer to this question is in actual fact, yes!
For more in-depth information on standardisation within the gift card industry, download our standardisation whitepaper here.
The reason for this is that consumers or end-users can easily be confused by the terms and conditions of gift cards and vouchers with regard to expiry dates, hidden fees or general confusion around how to cash in their vouchers.
Why should we standardise the gift card industry?
The main reason for the request for standardisation within the gift card industry is to make it fair for consumers all around. Let’s take a deeper look at why this is important.
Improve consumer protection
If anything, this is probably the most important reason as to why standardisation needs to take place within the gift card industry. If consumers and end-to-end users are confident that the industry is held to a high standard, they will feel more confident in the process and will be more willing to spend money.
Increase value and convenience
Standardisation of the gift card industry means that consumers will be able to conveniently use a gift card that is easy to use with modernised payment technology, such as adding the gift card to Apple or Google Pay.
The consequence of not keeping up to date with technology would be that consumers or end-users become disinterested in investing money in the industry.
Enabling industry growth
The domino effect of the standardisation of the gift card industry is that it will become more efficient and of higher quality. As a result of this, the industry will gain a financial advantage and become more profitable.
Current regulation:
Although we feel that standardisation needs to be implemented, there are regulations that need to be adhered to currently.
Terms and conditions:
Whenever a consumer or end-user purchases a gift card, they automatically enter into a contractual agreement with that company, which is governed by UK law. As a result of this, terms and conditions need to be clear and easily understood by the consumer.
Expiry date:
This is probably one of the most important things to consider when marketing and selling gift cards. Some gift cards, however, do not have expiry dates so it is important to make it clear to the consumer what the expiry date is, if any.
14-day cancellation:
Usually, once consumers purchase their gift card they have 14 days to cancel and change their mind. After that period of time, consumers are usually unable to cancel or withdraw their purchase.
Savvy stands as a prominent technology enterprise, specialising in global stored value processing and advanced analytics when it comes to gift cards and vouchers. We are the preferred ally for numerous major B2C brands, collaborators, and associates, dedicated to enhancing their stored value exchange initiatives and enhancing business outcomes.
For more information, contact us today!
