First Data Corp. has agreed to buy Gyft Inc., which sells digital gift cards, in a move to advance the Atlanta-based processor's mobile payment offerings.
The companies were already working to integrate Gyft's technology with First Data's Clover Station, a tablet-based point-of-sale system. The companies did not disclose financial terms of the acquisition, which they expect to close next month. Gyft's digital gift cards, which cover 200 major retailers, are accessible through a mobile wallet application on iOS and Android devices.
"Gyft, with its mobile gifting platform, and First Data, with its global scale and distribution network, together will accelerate the growth of virtual prepaid with powerful new tools for merchants of all sizes to deepen their relationships with their customers,” said Guy Chiarello, president of First Data, in a July 30 press release.
Gyft's reward program encourages consumers to use alternative payment methods when purchasing digital gift cards. People who buy gift cards using credit cards get 1 percent back in points, those who use PayPal get 2 percent and those who use Bitcoin get 3 percent. Gyft began accepting Bitcoin in May 2013 and it added support for PayPal in November.
"We are joining First Data to accelerate our growth and significantly improve the gift card experience for both customers and retailers," said Vinny Lingham, co-founder and chief executive of Gyft, in the release. "As a part of First Data's suite of innovation-powered products, Gyft will be added to a portfolio of technology-driven gift solutions that link advanced consumer-engagement technology with point-of-sale business solutions."