Source: InComm
InComm, a leading prepaid product and transaction services company, has acquired Giftango Corporation, a leading digital gifting solutions provider. Giftango expands InComm's reach into ecommerce gift card sales and distribution through high volume channels.
"This acquisition opens doors to new and meaningful distribution channels for InComm merchants and product partners. Giftango is the digital gifting technology behind very large loyalty, incentive and mobile platforms in the US market and has made inroads internationally as well," said Brooks Smith , InComm president and CEO. "This also adds proven B2B, ecommerce and promotional toolsets to the portfolio of InComm products."
Founded in 2005, Giftango entered digital gifting by providing turnkey solutions to help merchants sell gift cards from their websites. After identifying needs in the fulfillment, customer service and management of gift cards between leading merchants and their largest gift card purchasing partners, Giftango created solutions specifically designed to streamline these processes. Today, more than 150 leading brands deliver digital gift cards through Giftango's network of more than 80 partners.
Digital gift cards are rapidly growing in popularity among consumers. A holiday forecast by Mercator Advisory Group, an independent research and advisory services firm focused on the payments industry, predicted that retailers would issue eight million virtual gift cards during the 2012 holiday season. Giftango finds that as many as 80 percent of consumers select digital delivery when the option is presented alongside a plastic version of the same card in a loyalty program.
"The combination of our two companies brings together the cutting-edge digital ingenuity of a startup with an established leader in the prepaid space, creating a complete prepaid solution for all market participants that is unmatched," said David Nelsen , Giftango CEO. "Coming together allows us to extend digital prepaid functionality that is necessary for mobile wallets, incentive and loyalty distribution, financial institutions and the new mobile payments ecosystem. It is an exciting day for Giftango, our partners and our clients."
Giftango will become a wholly owned subsidiary of InComm and will continue to grow its operations in Portland, Ore.