Exploring Different Types of Gift Cards in Nigeria

What are the types of gift cards in Nigeria? Well, despite the fact that gift cards are very popular and are widely used all over the world, many Nigerians still do not know what a gift card is.

At least 95% of Americans have received a gift card in one way or another. On the other hand, many Nigerians are still completely in the dark about what gift cards are and how they can be used.

Hence, there is a need to explore different types of gift cards in Nigeria in order to shed light on the confusion surrounding them. In the ensuing paragraphs, we will answer many important questions. But let’s start with “What Is a Gift Card?”

What Is a Gift Card?

A gift card, also known as a stored value card- is a prepaid card loaded with a certain amount of money that can be used to make purchases for goods and services at retail stores or other financial institutions.

There are many types of gift cards in Nigeria but they usually come in two forms: a physical plastic card and an e-code.

An e-code is a digital gift card bought online. Due to its convenience, it is more popular than a physical one. When you purchase an e-code online, it is sent to the email provided.

Gift cards can be used either online or in-store. However, they are only used in-store when the retailer has a physical store in your location.

What Is a Gift Card Used For?

Different types of gift cards have different purposes; however, the purposes common to them are all discussed below.

1. Gifting

The name “gift cards” suggests that they were primarily created for gifting. Many of us usually don’t know what to gift someone on special occasions, such as a birthday, a festive occasion like Christmas, a housewarming, getting a new job, or other joyous occasions.

To solve such dilemmas, gift cards were created. Depending on the type of gift card, an amount is loaded on the card, and the recipient can use it to buy whatever they wish.

It is more convenient and classier than putting some money inside an envelope. And you don’t only have to gift someone; you can gift yourself too! And celebrate yourself for a job well done.

2. To Purchase Goods and Services

As mentioned earlier, gift cards are used instead of cash or bank cards to purchase goods and services at any retail store that accepts such means of payment.

3. To Reduce Overspending

What better way to curb unnecessary spending than using a gift voucher with limited money on it? That way, your budget won’t be exceeded and there is no need for excessive financial worries.

4. To Store Money/ Redeem it for Cash

Some gift cards do not expire and, hence, can be used to store money for future use. And by redeeming unused gift cards for cash, you can make some money.

This is a great way to protect your finances. Many different types of gift cards in Nigeria go unused because most stores don’t accept them, and most people don’t know what they are. However, these cards can be sold for cash on different online platforms, which we will discuss shortly.

5. To Promote a Business

If you are using a physical gift card and not an e-code, chances are that the logo of the company that issued the gift card is printed boldly.

Whether it is a Netflix gift card or Amazon gift card, it increases the awareness of that particular company and, inadvertently, promotes the business.

Different Types of Gift Cards in Nigeria

Now that we know what a gift card is and what it is used for, we can now explore in-depth the types of gift cards we have and take a few examples:

1. Closed-Loop Gift Card: These are commonly issued by retail stores and are only eligible for use at the store that issued them or in its chains, whether online or in-store. Examples include Steam gift cards, Nike gift cards, Netflix gift cards, Google Play gift cards, etc. One disadvantage is that it limits you to buying only from a certain store.
2. Open–Loop Gift Card: These can be used anywhere and are general-purpose, which means they can be used at any store that accepts them. Typically, financial institutions like banks issue them. They can be used to make all kinds of electronic payments. Examples of open-loop gift cards include Visa gift cards, American Express gift cards, Discover, etc.

Closed-loop or open-loop gift cards can be either physical or digital. However, a digital form is usually preferred due to the possibility of losing a gift card and not having the card number saved somewhere else.

Top Ten Gift Cards with High Resale Value in Nigeria

Like we said earlier, in Nigeria, most gift cards cannot be used and hence, they have to be redeemed for cash. Here are ten of the most common type of gift cards redeemed for cash in Nigeria:

1. Steam Gift Card
2. Apple/iTunes Gift Card
3. Google Play Gift Card
4. Amazon Gift Card
5. eBay Gift Card
6. Nordstrom Gift Card
7. Sephora Gift Card
8. Razer Gold Gift Card
9. American Express AMEX gift card
10. Nike Gift Card

Also read: Top 10 Highest Gift Cards in Nigeria

Steam Gift Card

This is a gaming company’s gift card and there is no doubt that there is an alarming number of gamers in the world, which equals high demand for the gift card. Steam gift card can go for as much as N1400/$ depending on the platform used to sell.

Apple Gift Card

This gift card is easy to use, and the balance is relatively easy to check. Apple store gift cards can be used to buy products on Apple or Apple Music.

Depending on whether you are buying or selling, they can be as high as N700-N800/$.

Google Play Gift Card

This type of gift card can be used to purchase apps, games, music, movies, TV shows and related content on the Google Play Store. Currently, Google play gift card rate is about N990/$.

Amazon Gift Card

Amazon gift cards are used to purchase different items on the Amazon website. It is one of the gift cards with the highest rates in Nigeria. 

The exchange of Amazon gift cards, however, varies, depending on several factors. But it is sold at a rate of N740/$

eBay Gift Card

eBay gift cards are widely used by wholesale buyers and drop-shippers, which makes them in very high demand and one of the most expensive types of gift cards in Nigeria.

eBay gift cards can be used to shop for millions of items in the store. eBay gift cards can be sold for as much as N965/$.

Nordstrom Gift Card

A Nordstrom gift card is a type of gift card in Nigeria issued by Nordstrom, a store that sells a wide range of products, including clothes, accessories, makeup products, etc. As of June 2023, the rate of a Nordstrom gift card was N650-N950/$.

Sephora Gift Card

Sephora’s major consumers are women. This is because its services deal in cosmetics and beauty products, including skincare, hair care, and fragrance products.

A Sephora gift card, sold at a rate of N930/$, is used to pay for these products.

Razer Gold Gift Card

Razer gold gift card is similar to steam gift cards due to its popularity among gamers.

When it comes to in-game payments, it is a practical alternative that Razer created. The rate of a Razer Gold gift card is about N1,000/$. It can be a physical or online type of gift card.

Amex Gift Card

American express gift cards, known as AMEX, have a fixed amount of money that can be used on them and are used to pay for items wherever AMEX is accepted. It is an example of an open-loop gift card. Amex has a rate of N820/$ currently.

Nike Gift Card

The Nike gift card is an example of a closed-loop gift card. It is used to purchase items from a Nike store. Nike sells shoes, clothes and other related things; hence, a Nike gift card is very common and can be sold for a rate of N550-N850/$.

How to Sell a Gift Card in Nigeria

If you have a gift card you are yet to use or don’t want to use and you prefer to redeem it for cash, there are many online platforms where different types of gift cards in Nigeria can be redeemed. Some of these include:

• Sure Gift
• CardTonic
• Paxful
• CardCash
• CardNosh
• Gift Card Granny
• Facebook marketplace

However, you have to be wary, or else you’ll be cheated out of your money.

Also read: Top 10 Best Gift Cards to Sell in Nigeria Right Now

Factors to Be Considered when Choosing a Site to Sell Gift Cards

1. Payment options: Some sites pay you in cryptocurrency, while others pay in cash. If cryptocurrency is not what you want, maybe cash instead; a platform like Paxful is not recommended.
2. Exchange rates and fees: This is a very important factor to consider when choosing where you want to trade your gift cards. Some platforms might charge extra hidden fees, while others may not give a good rate for the gift cards.
3. User experience: Look for an app that is easy to navigate and has a user-friendly interface
4. Reputation and security: Scammers abound, especially in Nigeria. Ensure the app has good security measures to prevent leak of sensitive financial information.
5. Widely accepted brands: Use apps that accept a wide range of gift cards so you can easily trade them.
6. Customer service/support: When choosing apps, choose one with good customer support in case any help is needed with a transaction or there is a problem or difficulty regarding payment.

Some Tips to Help While Selling a Gift Card

1. Research the value: Before any trade is to be done, market survey must be done. This includes knowing the standard rate of the gift card, so you will not be cheated. You definitely don’t want to sell any item for less than the price in this economy. And there are different types of gift cards in Nigeria so you have to know the price of each.
2. Check for expiration date: This is very important so you don’t hang on to an already expired gift card. You need to trade it before the expiry date.
3. Choose the best platform to sell: Above are some tips to help you choose a good platform, and look out for good rates on the platforms.
4. Beware of scams: Gift card scams are more common than not, especially in Nigeria. Don’t fall for anything that looks too good to be true.

Some Common Gift Card Scams and How to Avoid Them

With a surge in the sale of gift cards, there is an increase in fraudulent activities regarding it. Some of these scams include:

• Impersonation scams:  You might receive a text, call or e-mail from scammers posing as legitimate businesses or organizations claiming you won some prize and asking you for some suspicious payment with which you need to use a gift card to pay.
• Online auction scams:  Certain platforms will sell gift cards for ridiculously low prizes with a high discount. Some of these cards may be stolen and inactive, therefore unusable. As said earlier, anything that looks too good to be true is most likely not true.
• Spoofing Scams: Some scammers may create fake websites; this is why it is very important to cross-check the platform you use to sell your gift cards. Most of these websites look like legitimate ones but with thorough investigation, you can decipher which is safe to use and which is not.

Also read: How to Convert Gift Cards to Cash in Nigeria and Ghana

How to Avoid Gift Card Scams

1. Do not give out sensitive information over the phone to an unverifiable source.
2. Understand fully what Gift Cards are.
3. Check for authenticity.
4. Use official websites and apps.
5. Report suspicious activity to authorities.

Some Frequently Asked Questions

Conclusion

Hopefully, you have learned all you need to know about the different kinds of gift cards in Nigeria. For more interesting reads, follow us on X or Twitter, @SiliconAfriTech.

Recommendations

• How Much is a $100 Amazon Gift Card in Ghana Cedis?
• How to Check Apple Gift Card Balance (Full Guide)
• Learn How to Check Your Steam Gift Card Balance Without Redeeming: Gaming on a Budget?
• Top 10 Highest Gift Cards in Nigeria 2024
• All You Need To Know About Digital Gift Cards in 2024

Reference

• Cardtonic.com: Different Types of Gift Cards List – Updated In 2024