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First Data buys Transaction Wireless to bolster digital gift card platform

First Data Corporation hopes to bolster its prepaid gift card solution by buying digital gift card pioneer Transaction Wireless, a San Diego-based enterprise digital gift card distribution platform.

July 17, 2015

First Data Corporation, a payment technology and services solutions provider, hopes to bolster its prepaid gift card solution with the acquisition of digital gift card player Transaction Wireless, a San Diego-based enterprise digital gift card distribution platform.

The move complements First Data's 2014 acquisition of Gyft, a consumer-facing digital platform that enables consumers to buy, send, reload, manage and redeem digital gift cards using mobile devices.

"First Data now offers one of the industry’s most integrated, complete and comprehensive prepaid gift card solution at scale,” said Barry McCarthy, executive VP, network and security solutions at First Data. “Along with our strong gift card processing and Gyft solutions, Transaction Wireless' outstanding proprietary and comprehensive digital gifting platform will help our clients expand and accelerate their gift card programs."

"We have worked hard to build a world-class gifting platform and are delighted to join the First Data family," said Transaction Wireless’s Basil Abifaker. "Our capabilities, when combined with First Data’s global payments leadership, will drive even more innovation and growth in the gift card market."

The cloud-based, digital gift card distribution platform supports open and closed loop prepaid, store-branded gift card program management, offering end-to-end management and B2B and B2C distribution solutions for retailers, distributors and resellers. Business owners can migrate from traditional plastic or paper gift cards to digital gift cards via multi-format distribution options, including mobile, social, email and digital wallets. This flexibility offers potential to increase customer transaction frequency and loyalty opportunities, according to McCarthy.