The recent explosion of both social and mobile platforms offer an unprecedented opportunity for new companies to revolutionize huge markets for hundreds of millions of people globally. Wrapp was launched in Sweden in November 2011 and then expanded to rest of Europe. Wrapp brings these social network and mobile platforms together to transform the gift card industry and the social expression of gift cards.
Wrapp, the Swedish social gifting startup, is now expanding to the U.S. to tap America’s love of gift cards. The startup, founded by Rebtel co-founder Hjalmar Winbladh, is getting tied up with a number of retail partners including Gap,H&M, Sephora, Wall Street Journal and Wayfair and another 15 retailers will also get with the program.
The service offers retailers a way to drive measurable traffic into their stores, both physical and online. Retailers can offer gift cards with a small amount of value — perhaps $5 or $10– that users of this service get for free. Those users can add more money on to the card before sending it to a friend, or retailers can offer paid gift cards that a user can fill up and send to their Facebook friend.
Wrapp users get alerts for a friend’s upcoming birthday, prompting them to choose from a selection of gift cards. The retailer can offer the free cards based on who they’re trying to reach, but they don’t have to pay anything until the card is redeemed, which is usually part of a larger purchase. Users typically end up spending four to six times the amount of a free card. The “cards” are distributed via a smartphone app on iOS or Android, which they can use to redeem it in store. Some gift cards can only be redeemed online through Wrapp’s website.
Wrapp has the potential to transform the consumer experience of gifting. Now your Facebook wall can be more than a set of text messages; it can be how your friends collaborate on gifts. Moreover, since sending a gift is as easy as sending a message, we may see a new form of sharing culture grow on the web. Wrapp makes it not only trivial to know when someone you know receives a gift, but also gives you the ability to let them know you care by adding something yourself.