Square Leverages Credit Card Network for Gift Cards
Shopping for just the right gift can be difficult and time-consuming, that’s why gift cards have grown to become a billion-dollar industry. This week, Square, a payment system that uses proprietary hardware to run credit cards on a mobile device, is now offering its members the opportunity to purchase gift cards from all businesses that use its payment network.
Here’s how the new product works:
1) Users download the Square app to their mobile device or log in online to shop merchants that accept Square payments.
2) Members can select from one of many local or national U.S. Businesses to select a gift card they wish to buy.
3) A payment is made for the gift card, and the gift card is delivered to them to give to a loved one as a gift.
The whole process takes the pain out of the shopping experience. As shoppers have to deal with busy stores, long lines, and traffic to buy gift cards at local stores, the new Square system will significantly reduce the time it takes to buy gift cards as a gift. Square charges local and national gift card sales to the user’s credit card, enabling them to also reward themselves with cash back rewards and points so popular with credit card users. All in all, the new system is sure to be a hit this holiday season as Americans spend as much as $100 billion giving gift cards to one another – a business that Square could certainly revolutionize with its valuable network.
