Facebook Inc. (FB) Adds Physical Card to Gifts Program

Facebook Inc. (NASDAQ:FB) at one point ran a Credits program through its social network, where users could get a physical gift card from a partner retailer. Well, with Facebook launching its new Gifts service – where users can purchase gifts for friends directly through Facebook’s site via partner retailers. To go along with Gifts, Facebook is apparently ready to launch the Facebook Card, which is expected to be a physical gift card that recipients can use at ant partner retailer.

It is reported that Facebook Inc. (NASDAQ:FB) is partnering with Target Corporation (NYSE:TGT), Sephora, Jamba Juice and Olive Garden at the start of this program, with the possibility to adding other partners as this service rolls out over the coming months. This can be noteworthy – while online gift cards have been expanding in recent years, the physical gift-card segment of the market is still worth billions of dollars a year.

Facebook Inc. (FB)While Facebook Inc. (NASDAQ:FB) isn’t saying much about this officially – and since the rollout will be gradual over several weeks, there’s likely no rush – it appears that the mechanism for this Facebook Card is a little uncertain. Many retailers like exclusivity, which is why they offer their own gift cards of various denominations – so the money is given to the retailer directly, and the customer is then “forced” to use the card at the retailer. It seems that the giver can load the card with a certain amount, and that amount may then need to be distributed among the partner retailers, and the recipient must use the money allotted to each retailer – a recipient cannot get a $100 Facebook Card and use it at any of the four retailers at any time. If the $100 is split among each of the four retailers and you don’t shop at Sephora, that $25 remains unused; all because of the exclusivity.

What do you think of this Facebook Card experiment? Is there potential for Facebook Inc. (NASDAQ:FB) to improve its e-commerce approach? Will these retailers find success with this? Let us know your thoughts in the comments section below.

DISCLOSURE: I own no positions in any stock mentioned.

Please see these related FB articles:

Facebook Beats Earnings Guess, But No Analyst Consensus

3 Tech Companies, 1 Destination

Facebook Gets Upgrade, $38 Price Target from Raymond James

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Bloodiest UFC Fights Ever Fought

Most Expensive Rum Brands in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!