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E-gift Card Bot Attacks and Their Impact on E-commerce Businesses

E-gift Cards are the New Gift Standard

E-gift cards have become one of the most popular gift options for most events including birthdays, anniversaries and retirements. They are extremely easy and fast to purchase, personalize and use without requiring an in-store visit. For the recipients, e-gift cards allow them to buy what they want and when they want it, saving potentially frustrating trips to the store to return or replace unwanted gifts.

According to Blackhawk Network’s State of Consumer Gift Card Preferences in 2018, 55% of consumers surveyed report being interested in giving or receiving digital gift cards that can be added to a mobile app or digital wallet, especially the younger generation. 55% of consumers are interested in giving and 67% are interested in receiving a digital gift card. From a business perspective, e-gift cards can attract new customers, increase brand awareness and increase revenue.

The gift card market has skyrocketed and is valued at over $381B for 2020. It is expected to exceed $575B US$ by the end of 2026, growing at a CAGR of 6.0% during 2021-2026. According to TotalRetail, digital gift cards accounted for nearly 20% of holiday gift card sales in 2019, and the rise of digital gifting continues to have a major impact on retail growth.

The most popular e-gift cards are issued by the top general merchandise brands such as Amazon, Target, Wish and Walmart. Big food and beverage brands such as Starbucks and McDonalds as well as sports and fashion brands like Nike, Adidas and Nordstrom have a significant piece of the e-gift card market. The smaller and boutique brands are also experiencing growth in gift card sales.

Every successful financial instrument with billions in revenue attracts bad actors, confirmed by the increasing risk to e-gift cards.

E-gift Card Cracking (Read more...)