First Data Purchases Mobile Gift Card Platform Gyft
First Data, the payment technology solution firm, recently acquired Gyft, a mobile gift card platform that enables users to buy, store or send gift cards through their phones. This merger could open a range of opportunities for First Data in the coming months.
When Gyft was first launched in 2012, it was set up as a mobile wallet for gift cards. Since then, it has expanded to allow users to shop for and share gift cards from over 200 retailers directly on their phones.
Gyft managed to gain $7.5 million in financial support from companies like Google Ventures, The Social+Capital Partnership, Canyon Creek Capital and Karlin Ventures prior to the acquisition.
Once the acquisition has been finalized next month, First Data’s 300+ national retail prepaid clients will all have access to Gyft. This will allow First Data to take a stronger hold of the gift card industry and add new choices for consumers at the same time.
“Gyft, with its mobile gifting platform, and First Data, with its global scale and distribution network, together will accelerate the growth of virtual prepaid with powerful new tools for merchants of all sizes to deepen their relationships with their customers,” said Guy Chiarello, President of First Data, in a statement. “This means that the same robust toolset deployed by big box retailers will be coming soon to small- to mid-sized businesses, perfectly synched with our mission to offer innovative solutions to help our clients grow.”
Gyft was co-founded by South African entrepreneur Vinny Lingham and Mark Levitt. The acquisition is valued between $54 million and $100 million, though exact details of its worth have not yet been released.