PayPal Adds Support For Prepaid Gift Cards In Time For Holiday Shopping

Posted on

TechCrunch

PayPal has added support for prepaid gift cards through PayPal Checkout, thanks to a “patent-pending and innovative method” that the company claims took “months of research and investigations” to develop.

Though prepaid gift cards are a highly lucrative industry–research firm First Data estimated that more than $43 billion worth of gift cards were purchased during the 2012 holiday season–they can be difficult to use on e-commerce sites because most don’t have a billing address attached to them. In fact, 60% of people who received gift cards told First Data they preferred to use them at brick-and-mortar locations.

By offering gift card support through PayPal Checkout, the company may encourage more shoppers to redeem their gift cards online. PayPal isn’t doing this out of altruism, of course. The company currently collects a 2.9% fee on total sale amounts from merchants plus 30 cents per transaction, so it’s in their best interests…

View original post 74 more words

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s