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On Me, a digital gifting platform, has secured $1.7 million in pre-seed funding and partnered with Mastercard to modernize the $200 billion gift card industry. The platform focuses on personalized, multi-store gift cards, enhanced security measures, and eco-friendly digital solutions. By integrating advanced technology and sustainable practices, On Me aims to meet the growing demand for flexible and meaningful gifting options.
The Rise of Digital Gifting: A Market Ready for Transformation
The gift card market, valued at $200 billion, has long relied on magnetic swipe technology from the 1980s. Despite advancements in payments, the industry has struggled to modernize its offerings. Today’s consumers demand convenience and personalization, with many expecting platforms to integrate seamlessly with mobile wallets and digital tools. These evolving preferences highlight the need for solutions that combine functionality with adaptability.
On Me’s Vision: More Than Just Gift Cards
On Me stands out by offering gift cards tailored to specific hobbies and interests, moving beyond the traditional single-store model. Their product lineup includes options like the “Running, On Me” card, which grants access to over 25 brands, including Nike and Adidas. These cards provide flexibility, allowing users to shop across multiple retailers for curated products. Plans to expand this approach include experiential gifts such as horseback riding and cooking classes, further diversifying the platform’s offerings.
Mastercard Partnership: Driving Trust and Reach
The collaboration with Mastercard extends for five years and brings advanced payment infrastructure to On Me’s platform. By leveraging Mastercard’s expertise, On Me enables features like secure mobile payments, encrypted transactions, and smooth integration with Apple Pay and Google Pay. This partnership also underscores On Me’s commitment to offering safe and user-friendly gifting experiences.
Funding Milestone: Backing From Top Investors
On Me’s $1.7 million pre-seed funding round was led by Lerer Hippeau, alongside contributions from Focal VC. This funding supports key initiatives such as strengthening retailer partnerships and expanding research and development. The investment reflects confidence in the company’s ability to reshape the gift card landscape and meet the growing demand for personalized gifting solutions.
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Eco-Friendly Innovation: Solving the Plastic Waste Problem
Traditional plastic gift cards contribute significantly to environmental waste. In 2021, 3.4 billion plastic gift cards were sold in the United States, resulting in 37.5 million pounds of non-biodegradable waste. On Me offers a fully digital platform, eliminating the need for plastic while providing a sustainable alternative. This approach aligns with the increasing emphasis on reducing environmental impact and waste across industries.
Prioritizing Security in the Digital Age
Gift card fraud totaled $217 million in 2023, highlighting vulnerabilities in outdated systems. On Me strengthens security with Two-Factor Authentication (2FA) and on-device encryption for all transactions. These features ensure a safer environment for users while addressing long-standing concerns about the security of traditional gift cards. The emphasis on robust technology positions On Me as a reliable option in the digital gifting space.
Personalization and Connection: Bringing Thoughtfulness to Gifting
On Me integrates thoughtful design elements, such as video messages and custom visuals, to create a unique gifting experience. The platform’s curated approach ensures recipients receive gifts aligned with their interests, bridging the gap between digital convenience and personal connection. By enabling users to send meaningful, adaptable gifts, On Me taps into the growing preference for more personalized exchanges.
Positioned for Growth in a Booming Industry
The global digital gift card market is forecast to reach $1.2 trillion by 2032. On Me’s alignment with trends such as mobile wallet compatibility, sustainable gifting, and secure transactions positions it to capture a significant share of this expanding sector. With strong backing from Mastercard and leading venture capital firms, On Me is set to redefine how consumers approach gifting in a digital-first world.
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