Gifting money goes social

Written By Manju AB | Updated:

This festive season you may gift money to a friend anywhere in the world through social media networks including Facebook, Twitter or WhatsApp.

Oxigen, the company that set up the first mobile wallet in the country, now allows you to send airtime and money through social media networks at the click of a button.

Ankur Saxena, chief executive officer, Oxigen Wallet, said, "We want to popularise the concept of making money more social. We plan expand in the e-gift segment with e-vouchers of restaurant chains like Pizzahut, Flipkart and so on. Two months back, we started the concept of gifting airtime and sending money using social media networks."

The Reserve Bank of India (RBI) has also been promoting the concept of plastic money to reduce physical use of currency, making it safer option.

Gift cards are becoming the preferred choice for a large number of corporations and individuals when it comes to gifting employees and friends or relatives. The organised gifting market, which includes prepaid cards, e-vouchers and merchandise gifting in India is about $7-8 billion with 50% of the sales happening during Diwali. Gift cards and gift vouchers, which are growing in number, form about 22% of the $3.5 billion market.

Deval Sheth, consumer business head, ItzCash, said, "Both companies and people believe that prepaid cards are the best gifting option which is expanding the market. Itz cash will have about Rs 200 crore of the gift card market which includes gift cards and gift vouchers. We expect the gift card business in India to grow by 80%."

Besides card companies, merchant establishments including Croma, Shoppers Stop and Lifestyle have their their own gift cards which customers can use to gift. Banks also have prepaid cards that can be used for any occasion. Closed loop gift cards such as Starbucks gift cards can be used only in the issuing merchant. About 20% of prepaid cards are sold online and 80% offline. "E-vouchers are growing in numbers but in absolute value the offline gift cards capture the major chunk of the market," said Sheth.

Bangalore-based Qwikcilver Solutions, a private limited entity that provides gift cards and prepaid stored value card solutions, predicts that as more and more companies and customers opt for gift cards the market for such items in the country is set to hit Rs 6,000 crore.