Shopkick, a Palo Alto, Calif.-based provider of a location-based shopping app that rewards customers for walking into stores, making purchases and for other select behaviors, has selected Giftango, Portland, Ore., as a key provider of its digital e-gift card fulfillment.
Giftango’s platform connects shopkick users with their gift card of choice to deliver rewards instantly. Through a secure and consistent user experience across the entire mobile gifting environment, Giftango’s channel partner solutions and mobile API enable shopkick to quickly activate a retail brand’s e-gift card program, according to Mike Fletcher, chief marketing officer for Giftango. “We enable them to launch quickly with a large number of brands.”
Giftango’s platform connects to the all of the major gift card processors, Fletcher added. The company partners with channel partners who in turn work with individual businesses.
Giftango enables its partners to use e-gift cards in addition to the more traditional plastic card. According to Fletcher, 40 percent to 70 percent of consumers opt for the electronic gift card when available. Consumers also buy more gift cards when the electronic option is available. The consumer can either print out the gift card, or, if he has a smartphone, can simply provide the card directly from the device to most merchants. According to Fletcher, most merchants accept the e-gift cards directly from the mobile device.
Such functionality makes Giftango a natural fit for shopkick, Fletcher adds. “Everything they do is mobile. Once one of our partners turns the program on, they usually add additional stores to their loyalty programs.”
Lowe's, Chili’s Grill & Bar, Papa John's, Fandango and Magazine Gold Card were part of shopkick’s initial launch with Giftango. Another 14 retailers are scheduled to follow in the coming weeks, according to the companies.
Shopkick’s app enables consumers to earn reward points, known as “kicks” for walking into and making a purchase at participating retailers, and interacting with partner brand products. Kicks can be redeemed for in-store gift cards, among other rewards. Shopkick’s retail partners include Target, Macy's, Best Buy, Crate & Barrel, Old Navy and Toys ‘R’ Us, to name a few. Launched in August, 2010, shopkick has more than 3 million active users and has surpassed 1 billion in-app deals and offers viewed.
As shopkick’s popularity increases, the volume of rewards being delivered to users continues to rise. “Shopkick is truly mobile – from earning rewards to cashing them in – so it’s important that gift cards can be delivered and redeemed right from the mobile device,” said Cyriac Roeding, Co-founder and CEO of shopkick in a prepared statement. “With Giftango we have a one-stop shop for gift card redemption that provides shopkick users with a wide variety of reward options.”
“I have been watching shopkick since Cyriac was an entrepreneur in residence at Kleiner Perkins,” said David Nelsen, CEO, Giftango, when the deal was annouced. “Working with innovative and creative leaders in loyalty and digital gifting is one of the more fun aspects of the work we do. We’re looking forward to rapidly expanding the shopkick reward offering and watching what they do with it.”