Prepaid payment firm InComm
has launched a new digital version of its prepaid Visa gift and reward cards. Unveiling the new product on Jan. 20, the company announced that the new digital open-loop products would be available for distribution through incentive and loyalty programs immediately.
The new offerings allow program participants to receive the cards through their email address and redeem them at any U.S.-based e-commerce site that accepts Visa debit cards.
"More and more rewards programs utilize gift cards as a reward or incentive," said Mike Fletcher, general manager of InComm Digital Solutions, in a statement. "Being able to instantly deliver an open-loop reward adds value to the customer experience by making it easy for the customer to purchase whatever they wish immediately."
The new offerings are added to the InComm Digital Solutions Platform of open- and closed-loop prepaid cards, where it currently offers open-loop digital products for incentive and rewards programs to corporate clients. Fletcher said the new offering would make running a gift-card-based incentive program that much easier for companies.
"Challenges related to managing inventory, reporting, and reconciliation have held many companies back from offering digital open loop," added Fletcher. "InComm is pleased to mitigate these concerns by adding the products to a robust platform designed for fulfilling and managing stored value in B2B environments."
Fletcher points to a 2014 study on the B2B gift card market
by the Incentive Research Foundation, which found that open-loop cards were the most prevalent type used in corporate incentive and loyalty programs, favored in 56 percent of programs by companies with annual revenue of $100 million or more and rising to 62 percent for programs run by companies with annual revenues between $1 million and $9 million. According to InComm, the company has seen adoption rates for both open- and closed-loop cards of between 40 percent and 60 percent.
"With open loop playing an increasing role in incentives programs and digital prepaid on the rise for self-use, this product is an important offering," said Fletcher.