Be Kiind: Digital Gift Card Senders Only Pay if Card is Redeemed (Dec. 10, 2013)
Digital gift card provider Kiind has found a way to make hay from the fact that about 10 percent of gift cards go unredeemed. The Victoria, Canada-based company is marketing a line of digital gift cards that senders must pay for only if the recipient actually uses the card. The company developed its patented, deferred-payment concept in 2011, targeting the business rewards and incentives gift card niche, and this year is expanding the concept directly to consumers. “Send digital gift cards. Only pay when they’re claimed,” is Kiind’s mantra, promoted so far via the Internet and word of mouth.
Kiind offers a broad array of closed-loop gift cards from major retailers, including The Home Depot, The Gap, Nike, iTunes, Amazon and certain local retailers. Businesses can send digital gift cards to multiple recipients, and consumers can send cards to individuals or groups. Recipients receive an email announcing the gift card, which they may opt to accept, decline or donate to one of Kiind’s charity partners. Charities accepting Kiind gift cards include Doctors Without Borders, The Conservation Fund, Habitat for Humanity and Feed the Children, among others.
Senders must provide a credit card, which Kiind stores, and the card is charged when the recipient redeems the card. Senders are notified when the recipient redeems the card, including details on how and where it was spent. Senders may designate an expiration date for the gift card of up to one year, Leif Baradoy, one of the company’s co-founders, tells Paybefore. If the recipient doesn’t redeem the gift card by the expiration date, the sender pays only a small fee. Businesses pay a variable fee on broad gift card campaigns; consumers pay a fee of 35 cents to $1 per gift card for Kiind’s service.
Kiind appears to have hit on a novel and intriguing concept for cost-effective gift cards, Madeline Aufseeser, a senior analyst with Aite Group, tells Paybefore. One of the company’s challenges will be finding a way to promote the unique concept in a cost-effective way, she notes.
