Latest Trend for Diwali - Pre paid Gift Cards
Latest Trend for Diwali - Pre paid Gift Cards
Diwali's a time for gifting - spreading the joy, so to say. Corporates, especially, are a busy bunch around this time, sending out parcels for patrons, business contacts and employees alike.
The gifts themselves have been changing over the years. Traditional giveaways such as sweets, dry fruits, cakes, champagne, candles and diyas seem to have lost their appeal with corporates and made way for silver or gold coins, wrist watches, briefcases, brass or silver ware, candle stands, iPods and DVD players.
Things were bad last Diwali, what with the economy still in the grip of a slowdown, if not recession. But, the scenario has changed for the better since then and corporates are finding themselves in the throes of a boom instead, with attrition looking up.
That sets the stage for a huge jump in corporate gifting. Going by an Assocham study, corporate India's Diwali gift budget is likely to surge as much as 60% from last year to `3,200 crore.
In such a scenario, pre-paid gift cards, a new concept, have been gaining currency.
For employers, these cards make a lot of sense because they allow the employee to shop for items of his choice for a pre-decided amount. Why saddle him with something he may not value at all?
Central Bank of India launched one such card in association with MasterCard about six months ago, while Visa has launched its own late last month through more than 10 banks in the country.
In both these options, one can choose a gift value anywhere between Rs500 and Rs50,000, leaving the card holder free to use up the amount at any merchant location that accepts MasterCards and Visa cards, as also online or over the phone. Just to reiterate, unlike credit cards, these cards can be used only to the extent of the pre-loaded amount.
Visa decided on the product after almost 82% of the respondents in a survey said they would be interested in a pre-paid gift card, "indicating this is a product whose time has come," says Uttam Nayak, group country manager, India and South Asia.
T V Seshadri, general manager, South Asia, MasterCard Worldwide couldn't agree more. "Prepaid gift cards are increasing in popularity amongst the local community and are gradually replacing traditional gifting preferences due to the choice factor', to spend the amount as one deems fit.
Prepaid as a payment tool is also well received in India as consumers have already been exposed to the concept of prepaid for mobile and fuel payments."
The market is still nascent, but is bound to grow, if only because of the flexibility the concept allows. In fact, some feel it works better than cash incentives and can also be an ideal option for corporate and personal gifting, going forward. Imagine gifting your loved one of these cards and saying, "Go shop."
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