Kroger accelerates growth in corporate gift cards
A leading grocer is adding to its business-to-business gift card offering via a new partnership.
The Kroger Co. is teaming up with payments provider Blackhawk Network to offer Mastercard and Visa bulk prepaid cards through Blackhawk’s SaaS-based Velocity B2B business-to-business end-to-end gift card services. Kroger intends for this added offering to support its growth in the business-to-business gift card space by providing companies a way to reward or incentivize employees, as well as to help people in need.
Kroger’s Mastercard and Visa prepaid cards can be used where Mastercard and Visa are accepted, in store or online. Once an organization is approved, available gift card denominations range from $20–$500 and can be delivered to recipients when and how it wants, anywhere in the U.S.
“With the overall growth in demand for gift cards over the last year, the business-to-business gift card market represents a tremendous growth opportunity for our business, and we’re always looking for additional ways to enhance our offerings,” said Kate Ward, president, Kroger Personal Finance. “By adding Mastercard and Visa prepaid cards to our corporate gift card program, we’ve been able to offer our existing business-to-business partners more choice while also extending our ability to sell to additional customers, including more charity partners that look to our bulk gift card offerings for an easy way to make a big impact.”
“While the B2B gift card market in the U.S. is already estimated to be nearly $30 billion1, there is no doubt that there is still a lot of room to grow,” said Tom Boucher, head of Velocity B2B, Blackhawk Network. “As more businesses make the switch from physical gifts to gift cards for promotions, rewards, incentives and even charitable distributions, an increasing number of organizations will look to sharpen their focus on capturing more of the rewards and incentives gift card space. Through our complete, comprehensive gift card solutions for business buyers, we’re helping merchants like Kroger stay ahead of the game.”
Corporate gifting is becoming a big business. For example, specialty gift retailer 1-800-Flowers.com recently launched a new business-to-business gifting solution called Hero, based on technology from SmartGift. Hero, an intelligent enterprise engagement and gifting platform designed, developed, and operated by SmartGift, is now integrated into the 1-800-Flowers.com corporate gifting website.
Hero includes access to thousands of differentiated gifting options from across the 1-800-Flowers.com assortment of brands. The solution also provides features including same-day delivery and address-less shipping capabilities, customization offerings, and white-glove service.
The Kroger Visa and Mastercard business-to-business gift cards provided through Blackhawk Velocity B2B are issued by U.S. Bank National Association pursuant to license from Visa U.S.A. Inc. or by Mastercard International. There is no cash access, and the cards are for use in the U.S. only, subject to terms and applicable fees.
Kroger employs nearly half a million associates and operates almost 2,800 stores under a variety of banners that include Kroger, Ralphs, Dillons, Smith’s, King Soopers, Floors 4 Less, Fry’s, Harris Teeter, Fred Meyer and others.
Blackhawk Network delivers branded payment solutions through its prepaid products, technologies and network.