An evolving Nordic gift card market drives distribution channel innovation. In shopping malls, new machines are finding their way to high trafficked areas. The gift card kiosks reduce personnel costs and drive up card sales, and constitute an innovative channel for card distribution, especially in the business to consumer market.
The business case is simple. A kiosk has the potential to reduce the cost of issuing gift cards considerably compared to a physical employee. The kiosk is quicker, reduces queues at other points of sale, frees up personnel time, and it drives up sales.
Kiosks also represent opportunities beyond the core functionality of selling cards. A printed receipt represents a potential marketing channel. For example, while the card payment is being processed and the card dispensed, ads for promotions at select retailers can be displayed.
For gift card kiosks to be an economically viable option, card sales volumes are critical. Major shopping malls, hypermarkets and other large format retailer outlets are eligible destinations with many visitors. It is also conceivable to distribute an open loop product through card kiosks in other high traffic locations, such as train stations. Despite these opportunities, kiosks are likely to remain a niche channel.
This post is an extract from an article on gift card kiosks in MACAW Card Bulletin issue 27 - Gift Card Kiosks. To subscribe to the MACAW Card Bulletin, please contact sales@macawresearch.com
