MasterCard gift card

I was out doing errands on the weekend at my local Shopper’s Drug Mart and was waiting for the family to finish when I noticed a new product from MasterCard: gift cards in 50, 100 and 200 dollar denominations.  It grabbed me, finally a universal one-time use protected payment system that could be used by online retailers that conveniently accessible.  Not to be left out, both Visa and American Express have their versions as well.

I know there are other products in this space that can fill this need including refillable cards such as rePower and individual retailer gift cards as well as online alternate payment services such as PayPal and eBillme but the accessibly, convenience and financial isolation the major credit card vendors provide may become game changers in terms of getting the stubborn majority of the population over the hump and make that first  online purchase.

The problem with the retailer gift cards is their terms of use policies are all over the map.  Chapters/Inigo you must transfer the balance from your gift card to your online account first. Future Shop has taken a more consumer friendly approach where up to three cards can be used at one time be it credit or gift. One of the biggest benefits I am jazzed about is the remaining balance can be use elsewhere, be it brick and mortar or online, is finally moving the pendulum back to the consumer after a number of years of harsh gift card policies including the most hated expiry dates.

It also could change the alternate payments industry.  Why do I need these services, when I have a brand I trust; no setup and no tie to my financial information or institution?  Don’t get me wrong, PayPal and eBillme are strong and interesting companies but if I were them, I would be worried about the long term viability of the alternate payment marketplace.