Payments service Square has launched its eGift Cards service in the UK to help merchants offer pre-paid tokens to customers. eGift Cards can be purchased in person or online from businesses using Square and then redeemed in store.
We are delighted to be offering eGift Cards to our sellers in the UK in time to help them generate more sales during the most important trading period of the year. Square’s eGift Cards are a simple and affordable way for SMEs to offer gift cards – something typically only available for larger retailers. We look forward to helping businesses using Square to compete with larger competitors, bring money into the business, increase footfall, and widen their customer offering.
– Melinda Roylett, Head of Europe, Square
When a customer purchases an eGift Card, the funds from sale are automatically deposited into the seller’s Square account, just like with any other purchase. Sellers pay Square’s usual processing fees of 1.75% when they sell an eGift Card in person, and a 2.5% fee when sold online. There is no fee when the card is redeemed. The eGift Cards are delivered by email immediately or at a determined future date, and they have no expiry date.
Gift cards can be a great promotional tool for any retail business but it can also prove to be a difficult proposition for small firms to create and administer an effective scheme. So that would make the Square attractive, at first glance.
The Square reader that enables merchants to take card payments has been available in the UK since March 2017 and pairs with the Point of Sale app on a mobile device. Merchants get their money deposited into their bank account the next working day as standard and can pay an additional 1% for Instant Deposit to get their money right away. There are no monthly fees or contracts.