Diggecard is encouraging payment and merchant service providers to consider gift cards within their payment offering. Its May 30, 2023 commentary argues that providing an additional service merchants can use with their customers may strengthen the relationship with the payment provider.

The company places the proposal in the context of payment orchestration: connecting different payment methods and channels within a consistent experience. A gift card capability would allow a merchant to sell stored value that a customer can redeem or give to someone else.

Diggecard identifies several potential commercial effects for the merchant, including prepaid purchases, spending above the card’s value and another visit to use a remaining balance. It also discusses unredeemed balances as an aspect of program economics.

The provider’s retention argument follows from those merchant uses. If a gift card program becomes part of the merchant’s sales and marketing activity, Diggecard believes the service provider has another reason to remain in that relationship. The article presents that rationale without reporting a measured reduction in merchant churn.