The gift card marketplace model has steadily evolved over the years, as Plastic Jungle, Cardpool and others compete to grab a piece of of the market. For example, Plastic Jungle is trying to partner with online retailers to power a payment portal in the checkout process that will allow shoppers to use a credit from a different store to make an online payment. Cardpool recently gave its members the option to purchase instant redemption gift cards, instead of waiting to receive them in the mail for use. Today Cardpool is launching another useful feature: the ability to sell a gift card online without having to mail it in via snail mail.
Previously, in order to sell an unused gift card on Cardpool and other gift card marketplaces, you would need to mail the actual card in to receive money. Cardpool has developed a technology that allows users to enter the card number and pin number on the gift card and be able to sell the item immediately online. With this new program Cardpool will then mail you a check for the value of the card or you have the option to get an Amazon.com Gift Card or Facebook Credits for the value.
While Cardpool still has to mail you a check, the advantage of the new electronic redemption program is that you cut out the hassle of having to mail the cards in. Cardpool founder Anson Tsai says that the removal of this friction point in the process should be “game changing” for the gift card industry.
Cardpool has raised angel funding from a number of well known investors including Jeff Fluhr, Ron Conway, Max Levchin, Mitch Kapor, Alfred Lin, Naval Ravikant, Chris Dixon, Chris Sacca, and Paul Buchheit.