This month, Portland, ME-based CashStar announced two major partnerships--one with PayPal and the other with GiftCards.com.
On Dec. 22, the digital gifting company announced its collaboration with PayPal to integrate CashStar's digital gift cards into the eBay marketplace and the PayPal Digital Gifts store. This allows retailers that use CashStar's digital gifting platform to expand their distribution channels.
"We're excited to work closely with PayPal and our top retailer and restaurant client brands on this solution," said Ben Kaplan, CashStar president and CEO. "As digital, mobile and social innovations continue to change the way consumers shop, digital gift cards thrive because of their ability to move seamlessly across channels. Our client brands rely on CashStar for superior, differentiated digital gifting and trust us to expand their digital gift card sales through a range of new channels, including this terrific relationship with PayPal. We expect to rapidly grow this relationship with more retailers and increased sales."
On Dec.4, GiftCards.com announced its new partnership with CashStar. Now, consumers visiting GiftCards.com can purchase digital gift cards to specific retailers that are part of CashStar's digital gifting platform. The program immediately includes more than 50 brands and will onboard additional brands from the CashStar merchant network over the next few weeks.
"The future of gift cards continues its rapid shift to digital this holiday shopping season," said Jason Wolfe, CEO of GiftCards.com. "We're the largest and most trafficked website for all things gift cards and now our customers will have greater selection when choosing to purchase e-gift cards. Through our new partnership with CashStar, GiftCards.com is expanding the number of available retailers, benefiting consumers and the eGift Card segment more broadly."
Digital gift cards are considered to be one of the fastest growing segments within the $127-billion gift card industry. According to CEB/TowerGroup, e-gift cards will account for 4 percent of total sales in 2014 and will climb to 7 percent, or $10 billion, by 2016.
"As consumers increasingly shop across channels, they are choosing digital gift cards more and more because of the convenience and flexibility they offer," comments Gary Lombardo, vice president of marketing at CashStar. "Through this partnership with GiftCards.com, we are increasing consumer access to this popular gift option while providing our retail partners with a new distribution channel to help expand reach, drive acquisition and grow sales."
GiftCards.com offers Visa-branded digital gift cards that can be redeemed anywhere online, but its new partnership with CashStar represents entry into categories that include apparel, electronics, food, general merchandise, health and beauty, and sports.
CashStar-powered digital gift cards are available to consumers on GiftCards.com in any denomination ranging from $20 to $500 with no fees, as well as to bulk corporate buyers through its OmniCard.com B2B division.