Trading unused gift cards, store credits and vouchers is a becoming a booming business.
This week, Zeek, the voucher and credit trading app announced it had received $3 million in funding from Blumberg Capital and Qualcomm to fund expansion into the UK and Europe this year.
Chairman Uri Levin said Zeek deals with a “big problem” of US$100 billion in credit wasted globally every year by consumers.
“It is changing the way consumers buy through its innovative sharing economy that I love and it is simply making the world a better place.”
Daniel Zelkind, CEO of Zeek said the marketplace has proven a great success in Israel and so is excited about the potential in the UK.
“Close to 20 per cent of issued store credits in the UK go unredeemed year over year resulting in a $1.5 billion loss to consumers, as well as retailers that are not able to secure the 40 per cent up-sell on average they usually receive on redemptions.
“So, we see a huge potential for our service to UK consumers. What we are doing resonates with consumers as we are seeing hundreds of new users sign up every day. Our expansion into Europe will take place over the next 12 months so we hope to see people from Portugal to Poland using Zeek to regain lost value and save on their shopping every day.”
Alon Lifshitz, partner at Blumberg Capital said his company “loves” Zeek’s focus on helping consumers save money on unused store vouchers.
“Their strategy combines technological and macro-economic advancements to create a unique solution which will change how consumers shop in years to come.”
“Zeek has used a mobile-first approach to create a win-win for consumers and retailers,” added Mony Hassid, senior director Qualcomm Ventures. “We believe they are well positioned to succeed in the UK’s large, growing mobile commerce industry.”
Having experienced rapid growth within its native Israel, Zeek launched in the UK in December 2014. With over a billion pounds worth of store credit breakage each year, Zeek aims to regulate the secondary region and provide the solution to a costly and frustrating problem for both UK consumers and retailers.
Offering discounts of five to 20 per cent on average, Zeek offers a wide range of brands from across the High Street. Electronic gift cards and vouchers bought through Zeek can be redeemed instantly in-store and online with the app.
In addition to this, Retailers also benefit from increased footfall and conversion from customers cashing in their vouchers as well as incremental sales of approximately 40 per cent.
Zeek is available as a free download on the App Store and Google Play.
