Swedish social gifting service Wrapp debuted in the U.S. today, touting partnerships with more than 25 retailers and the availability of free gift cards.
Wrapp launched in its native country of Sweden in November, and it has since added the U.K. and Norway. The company has also established offices in Australia, Japan, the Netherlands, Taiwan, France, Germany, and Turkey, with the goal of lining up retail partners and rolling out its service in those countries.
Partners for today’s U.S. launch include:
- Björn Borg (designer underwear)
- Brooklyn Industries (designer clothing for men and women)
- Fab (daily design inspirations and sales)
- Gap (clothes for the whole family)
- H&M (family fashion)
- Sephora (makeup, skincare, fragrances, hair care, etc.)
- SpaFinder Wellness (massage, yoga, Pilates and fitness classes)
- The Wall Street Journal (daily business newspaper)
- Wayfair (furniture, lighting, cookware, etc.)
- WeSC (street style clothing and accessories)
Here’s how Wrapp works: Users who have installed the iPhone or Android application or accessed the Wrapp website receive reminders about their Facebook friends’ birthdays (although gift cards can be sent for any occasion). Wrapp then matches the social profiles of targeted friends with available partners that match their demographics, and users can send free gift cards that the partners make available, or add on to the amounts.
Wrapp’s integration with Facebook culls information about users’ friends’ birthdays and allows for news feed posts both when gift cards are given and when they are redeemed by recipients.
Once the gift cards are received via the mobile app, they can be redeemed via bar codes that display on Wrapp after confirmation that the recipient is in a location that accepts the gift card, or codes can be redeemed while shopping online. Physical gift cards are not necessary.
Wrapp said more than 1.4 million free gift cards have been sent out via its service over the past four months, from a user base of 165,000, most of whom are currently in Sweden.
Chief Operating Officer Carl Fritjofsson said the annual gift-card market in the U.S. totals more than $100 billion, adding that its merchant partners have reported that each sale averages four to six times the value of the free gift cards they make available to Wrapp users.
Chief Executive Officer Hjalmar Winbladh added:
Wrapp is the ultimate win, win, win app. You and I get to give our friends free gift cards to great retailers. The cards we give are stored in our friends’ phones so they’re always with them when they want to buy something they really want. And the merchants get a proven customer-acquisition and retention platform built on Wrapp’s friend-to-friend marketing for conducting performance-based campaigns.