The practice of sending gift cards internationally for personal and corporate gifting has seen a significant rise in popularity due to its convenience and global reach.
This trend is a key driver in the expansion of the global gift card market, which is projected to reach a value of USD 3.81 trillion by 2034 [1]. However, a primary challenge associated with the use of an international gift card is the complexity and potential costs of currency conversion.
Platforms like Toasty provide a streamlined solution, simplifying the process to make global gifting a seamless and cost-effective experience.
A global or international gift card is a digital card sent from a user in one country and redeemed by a recipient in another. The fundamental objective of such a card is to bridge geographical distances, enabling businesses to reward global teams, clients and partners.
This cross-border nature introduces specific challenges, namely ensuring the card's validity in the recipient’s country and managing transactions across different currencies.
There are two primary categories of international gift cards:
Single-brand Gift Cards: Some merchant-specific gift cards can be used across multiple countries, but not all. For example, while Amazon operates globally, an Amazon gift card issued in the US typically cannot be redeemed on Amazon sites in other regions. That’s why it’s crucial to check the gift card’s country restrictions before sending it to recipients overseas.
Choice Cards: These offer greater flexibility, allowing recipients to choose their preferred gift card from a catalog of brands available in their own country. This approach avoids currency and region limitations while giving recipients more control.
Toasty provides an extensive international gift card catalog that supports both models—providing a wide selection of global and local options that maximize convenience and value for recipients worldwide.
In the context of financial transactions, currency conversion is the process of converting one currency to another. When sending an international gift card, several obstacles can arise that may diminish the card's final value or create a negative user experience.
Fluctuating Exchange Rates: The value of global currencies changes continuously based on market dynamics. This volatility can alter the final redeemable value of the gift card between the time it is sent and when it is redeemed.
Hidden Fees: Financial intermediaries, such as banks and payment processors, may levy fees for currency conversion services. These charges can reduce the total value of the gift card, often without full transparency to the sender or recipient.
Dynamic Currency Conversion (DCC): DCC is a service offered at the point of sale that allows customers to pay in their home currency rather than the local currency. However, this convenience frequently comes with a less favorable exchange rate and additional markups, which can be passed on to the consumer [2].
Toasty employs a direct and transparent methodology for global gifting that eliminates the complexities of currency conversion for both the sender and the recipient.
The platform is engineered to handle all conversion mechanics automatically and without imposing additional costs. Toasty uses the Open Exchange Rates API to ensure every transaction reflects the most up-to-date exchange rates.
For the Sender: The process begins with the sender selecting a gift card value denominated in US Dollars. The sender pays this exact face value; Toasty does not charge any subscription costs or added fees for the currency conversion.
For the Recipient: Upon receiving the gift, the recipient selects their country of residence. The platform then automatically converts the gift card's value into the corresponding local currency.
The recipient is shown the precise local value available to them before selecting a gift card from a comprehensive catalog of local and international brands.
The core benefits of the Toasty platform include:
Truly Global: Automatic currency conversion is supported in over 90 countries.
No Hidden Fees: Senders pay only the face value of the gift card, ensuring complete cost transparency.
Recipient Choice: The Toasty Choice Card empowers recipients to select a brand that aligns with their personal preferences.
This architecture ensures a seamless and equitable Global Gift Card experience.
The Toasty platform is designed for operational simplicity for both the party sending the gift and the party receiving it.
Step 1: Create a free Toasty account and select the desired gift card type, such as the flexible Toasty Choice Card.
Step 2: Choose the amount to send, denominated in USD.
Step 3: Enter the recipient's details and include a personalized message.
Step 4: Send the gift instantly. Toasty supports bulk sending to reward multiple recipients simultaneously. For example, businesses can send thousands of international prepaid gift cards (Visa, Mastercard gift card) instantly with no fees.
Step 1: The recipient clicks the "Redeem" link within the reward email. No account creation is required on their part.
Step 2: They are prompted to select their country from a dropdown menu.
Step 3: The gift card's value automatically updates to display in their local currency.
Step 4: They browse a curated catalog of brands available in their region and make a selection.
Step 5: The e-gift card for the chosen brand is delivered directly to their email inbox for immediate use.
A simplified global rewards process is a critical asset for businesses operating in a globalized economy. The growth of the gift card market is increasingly driven by business-to-business (B2B) applications, particularly in the domain of corporate loyalty and employee incentive programs [3].
Toasty offers several features that provide a distinct advantage for businesses:
Simplified Budgeting: Businesses can pay for all global rewards in a single currency, which streamlines accounting and eliminates the need to manage multiple currency transactions.
Global Team Engagement: The platform makes it easy to reward employees, partners, or survey participants anywhere in the world, fostering a connected and motivated global workforce.
Scalability: Toasty is built to scale, allowing businesses to send thousands of gift cards at once via bulk CSV uploads or to automate reward distribution through API integration.
Businesses are encouraged to explore how Toasty can simplify and enhance their global reward and incentive programs.
While the technical mechanics of international gift card currency conversion can be complex and laden with potential costs, platforms exist to mitigate these challenges.
Toasty removes the friction from global gifting by managing currency conversion automatically, transparently, and without any fees for the sender. This approach provides a superior and more equitable experience for both the individual giving the gift and the individual receiving it.
By abstracting away the financial complexities, Toasty ensures that the focus remains on the act of appreciation itself.
Discover how gift card rewards are made simple with Toasty.