Gift card company gives An Post a run for its money
GIFT card company FromMe2You is planning quite the assault on the Christmas market.
The multi-store gift card business is dominated by An Post’s One4All cards, which last year saw revenues grow 17pc to €11.3m.
However, representative group Retail Excellence Ireland (REI) launched an alternative card, which is accepted by hundreds of members, last November. Directors include Oonagh O’Hagan of Meaghers Pharmacies and David Fitzsimons of REI.
Its big selling point to member retailers is the low commission rates charged for the card.
Chief executive of FromMe2You, John Wall, tells me the company has high hopes for the festive season of 2016.
When first launched, it was available only in the Topaz network of forecourt shops.
Now the company has partnered with Payzone to roll out the card’s availability in several hundred stores between now and Christmas.
“It will be available in at least one shop in every town in the country,” said Wall.
He is promoting the fact that it is the only multi-store card accepted by the Smyths Toys chain, which will feature in many people’s shopping trips in the coming weeks.
The company has also recently signed up some big new name retailers, such as Tesco and Applegreen.
These new additions may appeal to gift card recipients who prefer a more practical approach to shopping.
The card is also targeting employers, who may be feeling generous, given the increased limit on tax-free non-cash gifts to €500.
One4all remains the most dominant card in the market. The semi-state holds a majority stake in the business , while founder Michael Dawson, a former senator and national officer for Fianna Fail, owns 10pc.
New An Post chief executive David McRedmond has a lot on his plate, but it will be worth keeping an eye on the gift-card market.
One4All has not faced a serious challenge from a rival in this market, and retailers obviously feel the operation is ripe for some competition. The market is worth an estimated €150m a year.
However, An Post won’t be happy to give anything away too easily.