Wrapp is a new app looking to wrap up the reign of deal-of-the-day services like Groupon. Departing from the tried-and-not-so-true business model that made Groupon famous (but not a lot of money), Wrapp is clearing the way for people to send gift cards to others using Facebook or their Apple or Android smartphones.
Using Wrapp, users can send gift cards to others that can be viewed publicly. To make it a group gift, users can open up the card so all of their friends can load money on it before it is gifted. Wrapp will be able to access birthdays of Facebook friends, sending reminders well in advance, so those who want to set up a Wrapp card can get it organized. Better yet, some cards can be given for free, though these look like they will usually be relatively low in value and for major brands. Currently, only major brands like H&M and Sephora are on board, but Wrapp leadership has made it clear that they intend on working with small businesses just as Groupon does.
The argument behind Wrapp is that it makes gifting more convenient for the consumers, and makes for better business for participating companies. It sounds like they have a point – the gift card giving system is very simple to use, and businesses won’t have to worry about getting deluged with people cashing in on cheap deals, then never coming back, as has happened often with deal-of-the-day services. The numbers bear the argument out, too – a Fortune article says that businesses in Sweden, Norway, and the UK (where Wrapp has already launched) have seen “a lift in sales that was more than four times the value of the free cards.” On top of that, businesses will get free advertising from shared gifts and likes. Not a bad deal.
Wrapp has now launched in the United States, so give it a look if there’s an important birthday coming up in your friend list. If you’re often stumped when it comes to gift-giving, Wrapp sounds like a lifesaver.