Founded in 2011, Wrapp is a startup based in Stockholm and Silicon Valley that lets friends give, receive and redeem digital gift cards on Facebook using mobile devices, and allows friends to contribute to gifts given by mutual friends.
For merchants and in-store retailers this app could be the perfect way to connect with potential customers because it not only allows them to target specific users by demographics, but also provides a valuable form of advertising.
How it works: as soon as a gift certificate hits a Facebook wall, it becomes a group gift to which anybody can add. The recipient can use Wrapp’s Android or iPhone app to show a bar code at the store in order to redeem it. In Sweden, 165,000 people have given Facebook friends 1.4 million gift cards since Wrapp went live in November.
The app which was available previously only in the UK, Norway, Sweden and Japan, Wrapp is actually launching with a number of U.S. retailers including Fab, Gap, H&M, Sephora, The Wall Street Journal, Wayfair, and others.