The news comes as U.K.’s High Street posted its worst August performance in three years, which makes this holiday shopping season crucial for these retailers.
“We are delighted to be offering eGift cards to our sellers in the U.K. in time to help them generate more sales during the most important trading period of the year,” said Melinda Roylett, head of Square in Europe, in a press release. “Square’s eGift cards are a simple and affordable way for SMEs to offer gift cards, something typically only available for larger retailers. We look forward to helping businesses using Square to compete with larger competitors, bring money into the business, increase footfall and widen their customer offering.”
When a customer purchases an eGift card, the funds are automatically deposited into the seller’s Square account. There is the standard flat processing rate of 1.75 percent when they sell an eGift card in person, and a 2.5 percent fee when sold online. There is no fee when the card is redeemed.
The eGift cards are delivered by email immediately or at a future date, and never expire.
Earlier this year, the U.K. became the first international market for Square’s peer-to-peer (P2P) Cash app. And in March, the company announced the launch of a new Instant Deposit service geared toward small businesses in the country.
“Since our founding, we’ve heard that cash flow is a major pain point for small businesses. Our products were all built to provide fast and predictable access to funds to help businesses of all sizes remain competitive and agile,” Square CEO Jack Dorsey said in a press release at the time. “We believe our sellers should have the ability to access the money they’ve made as fast as possible, so we’re thrilled to provide this new service to businesses across the U.K.”