The global market for gift cards is not just a trend, but a potential goldmine, projected to reach a staggering USD $1.2 trillion by 2032. Imagine the possibilities of tapping into this booming market to simplify cross-border payouts and boost customer loyalty.
In our latest webinar, Runa experts Tomas Likar, Chief Growth Officer, and Jordan Bond, Head of Product - Network, shared invaluable insights on how businesses can accelerate the global growth of their rewards, incentives, and payout programs using Runa to save time, reduce costs, and improve customer satisfaction. Here's a recap of the key takeaways.
The webinar kicked off with Tomas introducing himself and his role at Runa. With his impressive background in driving business growth, Tomas explained that his main goals as Chief Growth Officer at Runa are to expand the network, create new business opportunities, and help our customers succeed in the ever-evolving digital payments landscape.
Tomas explained that nearly every business must send payouts across borders in today's interconnected world. Think about rewarding a loyal customer in Japan, recognizing a team member in Bulgaria, or compensating a survey respondent in Brazil. Efficient international payouts make this possible and are essential for several reasons:
However, cross-border payouts come with their own set of challenges. Tomas highlighted that sending international payouts could incur an 11% fee, meaning sending just $200 could cost over $22. These costs escalate quickly when sending payouts at scale.
Additionally, legacy systems often lack transparency, making it difficult to track transactions and leading to inefficiencies. This complexity and high cost make international payouts a significant pain point for many businesses. Overcoming these challenges is essential for efficient and cost-effective global operations.
In response to these challenges, many businesses are turning to gift cards as a viable option for international payouts. Gift cards simplify the payout process, allowing companies to efficiently distribute funds globally while recipients can conveniently access and spend their money, leading to higher satisfaction and engagement.
This global trend is evident in various regions. For example, China's gift card market was US$163.6 billion in 2023, demonstrating their widespread acceptance and reliability as a payout method. In Brazil, the market is expected to hit $14 billion, showing a significant shift towards digital payment methods.
Additionally, in Mexico, where many people use mobile wallets but lack bank accounts, gift cards offer a practical solution for financial inclusion. Similarly, Southeast Asia's digital transactions are projected to exceed $1 trillion by 2025, indicating a massive market for digital payouts. Businesses can capitalize on this growth by using gift cards to streamline their payouts, rewards, and incentives and connect with a tech-savvy population.
Following the shift to gift cards, the next step is launching a payout program in a new country. Tomas emphasized the importance of localization, which ensures a smooth user experience by adapting to local tastes and habits, helping to connect with new customers on a personal level.
For instance, while Amazon gift cards might seem universally appealing, Bol.com is a major retailer with 11 million customers in the Netherlands, making it a preferred option. This understanding of local markets is crucial because it ensures rewards are relevant to the recipients. Still, it can be complex due to the need to negotiate agreements and integrate with various foreign merchants. Additionally, dealing with multiple currencies requires careful coordination to ensure seamless and cost-effective transactions.
These challenges show why expertise in understanding local markets is essential. Successfully localizing your program creates a personalized user experience, making your business more relatable and successful in new markets.
Jordan demonstrated just how straightforward it is to launch a rewards program internationally with Runa. The user-friendly interface makes setting up accounts, selecting merchants, and managing currency exchanges a breeze, even if you're not a tech expert. It's all designed to handle high volumes and automate transactions, saving you valuable time and reducing errors so you can focus on what matters—growing your business.
An example of successful international expansion comes from Runa's customer, Each Person, which provides employee rewards and recognition programs. Partnering with Runa enabled Each Person to expand to eight new countries while maintaining high-quality rewards. This partnership helped them scale efficiently and continue delivering excellent customer experiences. By leveraging Runa, Each Person streamlined their international payouts, reduced costs, and improved customer satisfaction. Other businesses can learn from this and see the value of Runa in supporting global expansion.
Runa constantly expands its global network of digital payouts, currently covering 38 countries and 22 currencies. Tomas outlined exciting plans to include more open-loop methods like prepaid cards and push-to-card options to help businesses send payouts easily and instantly worldwide. This expansion means more flexibility and better service for businesses and their recipients.
If you're ready to supercharge your global growth, speak with a Runa expert for more details. Existing customers should connect with their account manager to explore how Runa can further support their business goals. Taking this step now ensures you stay ahead in the competitive global market. Don't miss out on the opportunity to simplify your cross-border payouts and improve customer satisfaction with Runa.