Gift cards have become increasingly popular in Nigeria and are known for their efficiency, convenience, and flexibility. Although they are called gift cards, they serve far more purposes than gifting. Whether you are shopping on Amazon or streaming your favorite show on Netflix, gift cards provide you with an alternative to pay without needing your bank card.
Beyond personal use, gift cards have evolved into a business opportunity in Nigeria. Many Nigerians can now trade gift cards for cash, turning them into a viable source of income. However, not all gift cards carry the same resale value. Some are ideal for entertainment purposes, while others are best suited for online shopping. In this article, we will explore the different kinds of gift cards commonly used in Nigeria and what they are used for.
What Are Gift Cards?
A gift card is a prepaid card that holds a certain amount of money, which can be used to pay for items at a particular store or platform. They are usually restricted to a particular brand or platform, which makes them unique gift items. The growing popularity of gift cards in Nigeria is fostered by e-commerce, fintech innovations, and their monetary value.
In Nigeria, gift cards are used for:
- Online Shopping
- Streaming online
- Gaming
- Gifting friends and loved ones
- Trading for Cash
Classification of Gift Cards
Gift cards can be classified based on different criteria; they could be classified based on their form, functionality, redemption type, as well as their usage.
Based on Their Form
- Physical Gift Cards
- Virtual Gift Cards
They are tangible cards in the form of plastic or paper, similar to a bank card, and are shipped after purchase from stores or received as actual gifts.
These cards are more common in Nigeria; they are usually delivered via mail or sms as e-vouchers or pins.
Based on Their Functionality
- Prepaid Gift Cards
- Reloadable Gift Cards
These gift cards come with a fixed amount loaded into them and cannot be reloaded or reused once exhausted. Most retail and restaurant gift cards fall under this category.
These types of gift cards allow users to add funds after initial use and can be used multiple times. They are mostly issued by banks or fintech companies. Examples include most bank-issued gift cards.
Based on Their Redemption Type
Gift cards can also be classified based on where they can be redeemed, while some gift cards are brand-specific and cannot be used anywhere else, others can be used across multiple stores
- Closed-Loop Gift Cards
- Open-Loop Gift Cards
They are gift cards that can only be used within a specific store or brand. Examples are Amazon gift cards, Steam, Jumia, etc.
These are the most flexible gift cards because they can be used across multiple stores. You can use them at any store that accepts the payment network. Examples are Visa, Mastercard, and American Express (Amex).
Based on Their Purposes
- Gaming Gift Cards
- Retail Gift Cards
- Music Gift Cards
- Entertainment & Streaming Gift Cards
- Travel Gift Cards
Just as the name implies, gaming gift cards are used for the sole purpose of purchasing games, in-game items, or subscriptions on specific gaming platforms or consoles. Popular examples of gaming gift cards used in Nigeria include: Razer Gold, Steam Gift Card, Xbox Gift Cards, PlayStation Gift Cards.
With retail gift cards, you can enjoy a unique shopping experience, buy and pay for items at your favourite stores. Gift cards like Amazon, eBay, Jumia, Konga, Shoprite, and Walmart allow you to shop for different items and pay using their gift cards.
Music lovers can use music gift cards to stream their favorite songs online or for digital music purchases. Various gift cards like Spotify Gift Cards, Apple, or iTunes can be used for this sole purpose.
Aside from streaming music online, there are gift cards that allow you to subscribe and watch your favorite shows online. Most popular gift cards in this category include: Netflix, HBO, Amazon Prime, Apple iTunes, Disney+.
Finally, the last on our list is travel gift cards. Travel gift cards are used to book travel-related services could be as flights, rentals, and hotel experiences, and enjoy the fun of it all. Some popular travel gift cards in Nigeria include: Uber gift cards, Airbnb gift cards, Delta Airlines, etc.
CONCLUSION
Over the last few years, the Nigerian market alone has shown a significant and steady embrace of gift cards as a modern payment solution. With limited access to international payment options, gift cards have become an ideal alternative. Now that you understand the various kinds of gift cards and how they work, you can choose the perfect one for any occasion. Get started today by exploring platforms like Payora to get gift cards at the best rates available.
