Have you ever received a gift card or bought one for someone? Given that we are in the holiday season, a lot of giftcards are going to be purchased and used! I recently completed a consulting project implementing a digital gift card for a business. Here’s what happened behind the scenes and what I learned.
The background
- This was for a client who has a service based business. They wanted to add giftcards so that existing customers could gift the service to their friends. It is something that they have been wanting to do for several years.
- It would be a new revenue stream for the business and a way to get new customers to try it out who might not otherwise buy it.
- The client had an existing WordPress website with no eCommerce functionality. They used Square for payments.
- They wanted it available for the holiday period (Thanksgiving/Black Friday, Christmas)
Learnings
- I learned there’s a lot of digital gift card options out there! If you are already using an eCommerce website, such as Shopify, Squarespace, etc… see if they provide their own gift card product. Otherwise you can use a 3rd party solution. I decided to use Giftup for the client as they had a WordPress integration, offered digital cards, and the cards could be sent via email. The cards can also be stored on your phone’s digital wallet.

- I started the process with a spike. The purpose of the spike was to do an initial investigation to test out key assumptions and risks. I wanted to get it up and running to test out the main user flow to see if it would hang together. It revealed that the user flow that has a lot of touch points from:
1. Buying the giftcard on the website using online checkout
2. Email notifications for the buyer, recipient, business
3. Internal dashboard for the business
4. Adding it to mobile wallet (Apple Wallet/Google Wallet)
5. Redeeming giftcard and checking balance

Giftup Digital Card in Apple Wallet
- The area that concerned me the most was integrating with the payment gateway, as there were some unknowns there. Giftup’s recommended gateway is Square and the client also was a customer of Square. So this made it a lot easier to hook it up and test. Giftup also provide a test credit card, so you can test out the payment flow as well.
- There is no upfront cost or monthly fees for the business to use giftcard. However, the business is charged a commission on the value of the giftcard sold. Giftup takes 3.5% of the gift card value and the payment gateway takes their cut (about 2% – 2.5%). So overall, there is a cut of ~5% that the business will pay. For example, if a customer buys a $100 giftcard, the recipient will receive a $100 giftcard in value. For the business, they will receive $95. There will be a $5 commission that will go to Giftup and Square. There is an option to offset these fees by charging it to the customer. In the example above, the customer would now pay an additional $5 fee on the $100 giftcard. So the total cost for the giftcard would be $105 for the customer.
- Testing it out with real users was invaluable. It revealed potential friction points and areas where a user might get confused e.g. How do I redeem the giftcard after I receive the email? Where do I check my balance? Where can I get help?
- From an internal testing perspective, Giftup’s testing environment requires that you are logged in to Giftup and have test mode on. You also need to be in the same browser for Giftup and the website you are integrating with. Testing was a bit difficult until I realized you had to meet all of these requirements.
- On the business side, there is a useful internal dashboard for business to check balances, manage cards (redeem, top up and void). You can also get analytics on all actions and lifecycle – email sent, email received, clicked, added to wallet, email delivery void, etc… You can setup as many gift card values as you like eg $50, $100, $200 and custom amounts where the customer can input a value.

Giftup internal dashboard
- Overall, I found the experience integrating Giftup was pretty good! They have integrations with a lot of platforms (eCommerce, blogs, etc..) and an API. Their setup process is easy to follow. From the user perspective, the giftcard checkout is intuitive to use. You can try it out the Giftup demo here.
Client Feedback
It was a fun project and it was completed in time for the holiday period. This was the feedback I got from the client:
“I want to express my gratitude to Matt because he really heard me out and executed a vision faster than anyone else has as it pertains to my site/business growth.”
Happy holidays everyone! And hopefully you get a giftcard over the holidays 🙂


