First Data Bolsters Digital Payments with Gyft Acquisition
Leading payment technology provider First Data has acquired Gyft, a pioneering mobile gift card platform, in a strategic move to enhance its digital prepaid offerings. The deal, expected to close pending shareholder approval, marks a significant expansion in First Data’s gift card capabilities.
About Gyft: A Mobile Gift Card Innovator
Founded in 2012, San Francisco-based Gyft gained early recognition as a TechCrunch Disrupt Battlefield alum. The 18-person startup developed a cross-platform solution that enables users to:
- Organize digital gift cards in a mobile wallet
- Purchase and send gift cards electronically
- Access cards from 200+ major retailers
Prior to acquisition, Gyft had raised $7.5 million from prominent investors including Google Ventures and The Social+Capital Partnership.
Strategic Benefits of the Acquisition
This acquisition delivers key advantages for both companies:
- For First Data: Gains cutting-edge mobile gifting technology to serve its 300+ national retail prepaid clients
- For Merchants: Expands digital gift card access to small and mid-sized businesses through First Data’s distribution network
- For Consumers: Provides more flexible gifting options across platforms
“Together, Gyft’s mobile platform and First Data’s global scale will accelerate virtual prepaid growth,” said Guy Chiarello, President of First Data. “We’re bringing enterprise-level gifting tools to businesses of all sizes.”
Deal Details and Industry Impact
While terms remain undisclosed, reports suggest:
- Valuation between \(54-\)100 million
- Negotiations lasted approximately two months
- Builds on existing partnership between Gyft and Clover (another First Data acquisition)
This acquisition reflects the growing $160 billion gift card market, with digital solutions gaining significant traction. By integrating Gyft’s technology, First Data positions itself at the forefront of mobile gifting innovation.
The deal underscores the increasing convergence of mobile technology and payment solutions in the retail sector.
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