IdeaEdge to Develop Social Network Gift Card

IdeaEdge, Inc., a developer of prepaid gift card programs, is expanding its offerings using social networks to encourage groups of people to contribute to one gift card.

The platform, called the Social Network Enabled Gift Card, will allow multiple people to contribute to a group gift card. The application will let people choose a card and create a list of friends from social networks, such as MySpace.com, to donate toward the card amount.

“We’re looking to expand in different areas with gift cards, at the type of innovation we could bring to the gift card industry,” Jim Collas, the firm’s CEO, said.

For example, people in an office environment may have difficulty obtaining money for a group gift. “Our goal is to streamline the process, Collas said. “Group gifting allows multiple people to contribute to a gift and send it easily.”

The new platform, which is expected to launch before the holiday season, can be sent virtually or in the form of a physical card. People will be able to choose from a variety of gift card merchants.

IdeaEdge is approaching several dozens brand name retailers about the program, and so far the response has been “very positive,” Collas said. The firm expects to have about 12 retailers signed up by the holiday season, he added.

The viral component of social networking is expected to help fuel the new offering, Collas said, adding, “Social networking is going to become a really big channel for group gifting and a new channel for gift cards.”