GoGift has been around for a long time, since 2003, and we have seen first-hand how this industry has developed – and we continuously try to play our role in constructively shaping it.
We believe in the strength of working together for the industry's greater good – and hence for the benefit of all - partners, clients, and not least all of us that make the industry tick.
Here are some areas where working together, we can influence and make a difference in the incentive space:
REGULATION
- Let’s share experience, best practices and constructively help the lawmakers.
For better and worse, we are experiencing our industry increasingly being regulated. New compliance regulations concerning gift card sales have emerged recently—from GDPR, tax legislations, and open-book policies to country-specific limitations. Wrapping our heads around all these changes during accelerated global growth for the incentive industry has been quite the journey for our Legal team here at GoGift. We imagine it’s a challenge for anyone within the incentive industry and certainly an area where we can share knowledge.
For example, the German benefits-in-kind has been updated to reflect an increase from a €44 tax-free amount to €50 in 2022. However, the rules for gift vouchers became stricter and somewhat of a gray area. Tax authorities have amended some clarifications to the original legal restrictions. Still, it remains a struggle to make sense of and understand what the new changes mean for global gift card distributors.
There are also regulations concerning what happens when a gift card expires. Global gift card providers must work around different validity periods. Most countries don’t offer any rights in terms of renewing a voucher or having it paid out in cash. Still, in Denmark, for example, the law dictates that you as a consumer can have a gift card paid out in cash – even up until a year after the expiry of the gift card. In the US, we are increasingly seeing states going after unused funds, most recently with the State of New York accusing H&M of not having correctly transferred unused gift card balances to the State’s Abandoned Property Fund.
With its unique lingo, let’s not forget the AML/KYC/KYB; even old-timers in the industry may sometimes have difficulties understanding what it all means within the incentive space. We must maneuver within an ecosystem of preventative measures to avoid money laundering and fraudulent activities and ensure the secure handling of personal data. From global requirements for KYC to KYB to the introduction of e-money into the gifting spectrum, we must constantly ensure we are in due diligence regarding compliance. This is also where we can share best practices to help each other out.
COMMODITIZING
- Let’s ensure it doesn’t become a race to the bottom, undermining the industry we have built.
Along with more digital gift cards and mobile-first approaches, we have experienced that the gift card side of the incentive industry has significantly commoditized. A gift card is more than just a code with a value; at least, it is our job to make it more than that. We must understand how our target audience matures and educate about industry economics, all while making sure that we don’t sacrifice industry standards and dilute what we diligently have built. Let’s work together to focus more on value-adds to avoid discounting the bottom out of our already paper-thin margins. All our clients value creative, solid, and sustainable gift card solutions.
THE GREEN AGENDA
– Together, we can make a significant environmental impact.
Digitalization and Covid have undoubtedly helped accelerate our industry's green initiative. Let’s keep inspiring each other. At GoGift, we work to improve everyday life by understanding the importance of sustainability in our product offerings and our daily work environments. In terms of our products, we innovate by adding sustainable efforts into our product development and everyday work routines. For example, all our printed material is FSC-certified. We also manage our energy consumption with a strong focus on minimizing server carbon footprint, reducing the use of plastic products, and sorting all our waste, recycling as much as possible. Together we can all make a positive impact and show that we are a professional industry that takes environmental challenges seriously.
FRAUD AND CYBER SECURITY
– It is our common enemy; let’s combat it together.
Our industry has always faced fraud, which is not about to change. Digitalization and instant delivery methods have only triggered more instances of potential risk. In the race against the scammers, new weapons have fortunately also appeared. One significant technological development is AI identifying patterns and abnormal behavior, which could help catch suspected fraudsters, scammers, and money-launders before they can attack. It is a common threat and one that doesn’t just challenge our individual businesses but also the overall reputation of our industry. At GoGift, we have a dedicated fraud team that continuously aims to be one step ahead of potential threats.
A TREMENDOUS LONG-TERM POTENTIAL
- Together, as one dynamic industry, we can leverage.
The good news is that our market sector presents massive long-term potential if we all collaborate and work within a professional framework for the greater good of our industry. We need to be willing to make significant global investments to address the increasing demands on global gift card suppliers. As global content distributors, we must comply with local laws and legislation to ensure we can trade safely on a global scale.
GoGift is proud to be a part of the IMA, GCVA, and the incentive industry as a whole, creating positive social impacts for our environment, stakeholders, consumers, and all gift recipients worldwide. This is just the beginning, so let us continue building this great industry together.
At GoGift, we are always ready to talk, collaborate and grow, so don’t hesitate to reach out!