People spent hours searching for the right corporate or personal gifts, assuming what the recipient would want. With the introduction of the gift card options, they no longer have to be lost in the paradoxical axe. By presenting a Visa gift card or a digital prepaid card, they can stay rooted to the value of having the thought counts vs buying the perfect gift. What’s more? They can do this in the comfort of their homes or office workspace. When it comes to gifting, they are the most liquid and adaptable option one can have. They are not so on the face like cash, where it might seem direct, and they are not too specific such that the person feels obligated to use it or return it.
Gift cards have all the features of personalized gifting, as one can attach a thought or sentiment with a message. And they provide them with the power to purchase. But more questions occur regarding their worth, usability, perspective and functionality.
What Are Gift Cards?
A physical or virtual gift card, like the presenters, can buy a visa gift card for specific amounts. The recipients can use them in a particular store, a chain of stores or in partnering online platforms to purchase their choice. It is a market solution for the consumer’s need to fulfil gifting obligations and desires without committing to products. The Australian gift card market has been expanding with new commercial opportunities. While initially, consumers used gift cards for their loved ones. They are increasingly being used as corporate incentives and store promotions to satisfy resource management and marketing objectives. It has led to the Australian gift card market valuing at 1.5 billion to 2.5 billion AUD annually.
How Gift Cards Affect Consumer Welfare?
According to a survey about the retail decisions in Australia, about 40% of the respondents receiving products and services as gifts were not happy with them as the gits did not match their preferences or needs. And many gift-givers are not sure about the preference of the receivers. Welfare refers to the degree to which the consumer benefits by engaging in the transaction of gift cards. As mentioned before, gift cards provide receivers with the freedom to select a gift of their choice. Therefore, gift cards have the potential to increase consumer satisfaction and welfare compared to other no-cash, product-based gifting options. 83% of the survey respondents believe gift cards to be the best option for gifting as it is a convenient choice, flexible and not too liquid as cash.
How Do Consumers Benefit from Visa Gift Cards?
As gift cards are designed to be the ideal gifts for presenters and receivers, they offer security and flexibility to all. Numerous merchants from all over Australia and other countries accept gift cards during transactions as payment. They provide multiple pricing options in different tiers to match any occasion. The gift-givers can buy cards individually or in bulk, depending on their personal or corporate requirements. They can buy physical cards or e-cards and email them instantly to the receivers. They need not rush to use the card as they have a prolonged expiration date of five to seven years. They sometimes even provide ATM accessibility. Additionally, if the receivers lose the card through misplacement or the card is stolen, they can recover the funds.
Visa gift cards are the best presents for those who love shopping, live far away or are challenged to shop. One can also buy gift cards for themselves to protect their bank account or identity from a merchant.