Retail Solutions - Comet claims a first in electronic gift card service

Electricals retailer Comet has launched an electronic gift card in selected stores. Comet claims it is the first electrical retailer to look at gift cards - a magnetic stripe alternative to paper vouchers.

The electronic cards will be made available for purchase primarily over the phone or the Internet, but are re-deemable in all of the company's 250 stores.

The cards will be available in£10,£25 and£50 denominations. The retailer plans to make the cards available for purchase in all stores next year and to extend the service to top-up cards.

Gift card service providers such as PrePay Technologies - the retailer's technology partner in the venture - claim that there is more chance of spending money on a purchase over the value of the gift card than there is with a paper voucher, which has to be redeemed all in one go.