Gift cards have grown in popularity; in fact, we loaded more than $450 billion onto prepaid cards, including gift cards, in 2011. But how will they do if the recipients have the option of purchasing them the closest ATM?
Natural Combination
At least one expert thinks it’s a great fit. Todd Nuttall, who’s the president and CEO of Better ATM Services, said in an interview this week that the prepaid industry as a whole is “hungry for better ways to get into consumers’ hands”. He says it’s a natural transition that gift cards be purchased in the same place we’re already using our debit and credit cards: the ATM. The fact that ATMs are everywhere these days only makes the idea that much more feasible. He’s banking on it.
In early 2012, Nuttall and his company launched a modified gift card that was compatible with ATMs. He said the challenge was to
adapt the world to a plastic that would work in a cash machine… but would still work at the point of sale, just like people are accustomed to.
He’s not alone in his thinking. Visa’s on board and the result has been a thinner gift card that fits into the cash dispensing “cassettes” of an ATM. Many people may not notice, but gift cards are generally the same size as a traditional credit card or debit card, but they’re thicker. They’re certainly thicker than bill currency. As with most things, the devil’s in the details and the details reveal the finished product is but one third of the thickness of the credit cards we currently carry. It’s then divided into what’s called “snap apart panels”, three total. One is the actual card while the second panel has the federal compliance information and the final panel, interestingly enough, is designed to provide coupons.
Advertisers
Golden opportunity for those looking for creative advertising avenues? Absolutely. Many of the world’s biggest names are either on board or have already staked their claim. Ah… but how will consumers feel being inundated with more ads? Actually, according to Nuttall,
We found in research that everyone struggles when they pay a fee for a card but they do it because of the convenience factor. But when you get an offer or something of value, Coke or a free dinner or breakfast or something, you feel much better about it. You feel you got something for what you did. So you’re actually bringing that additional value to the consumer where they get the card and they also get an incentive coupon.
All in all, the plan has benefits with few – if any – downsides. It’s currently in pilot mode and is being tested in several markets. It’s expected, however, that the popularity will continue to grow and within a year, this option will be available to consumers around the country.
